Finance Ministry will provide $ 320 million worth of guarantees to the airline • Company owners will also need to inject NIS 100 million into the company • At the same time, El Al will have to make streamlining measures - including many layoffs and cancellation of unprofitable targets 

• Will be recharged? EL AL planes are parked at Ben Gurion Airport

  Photo: 

  Photo: Yossi Seliger

El Al Rescue: Finance Ministry approved tonight (Sunday) The Treasury approved a 80 percent $ 400 million state guarantee requested by the Israeli airline to continue to survive the day after the Corona crisis.

While the Treasury has approved the state guarantee, the approval includes many restrictions, including a demand for $ 150 million in company payments, further streamlining beyond the current plan that would include cutting employee wages and further painful cuts. Treasury officials will require Elle to sign any of the future measures designed to streamline the company, with the aim of securing the loan repayment. Including many layoffs and cancellation of flight destinations.

Israel Today has learned that in the Ministry of Finance, El Al has set a number of conditions, including improving the capital structure of the company by injecting NIS 100 million in shareholders' capital, making additional efficiency in the company not less than $ 50 million per year, and prior agreement of Employees for the $ 150 million debt relief and redeployment plan.

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The many restrictions and reservations make it clear how much the Treasury fears the airline will not be able to meet the loan repayments, and Treasury officials strongly criticized El Al's conduct in the days before the Corona crisis, stressing that it was an ineffective company.

As mentioned, Al is expected to cut senior wages, get rid of aircraft, seek postponement of reimbursements from companies with which it works and eliminate less profitable destinations such as San Francisco and Manchester. At the same time, the dismissal of thousands of employees in the company is expected in the first wave and there may be further layoffs in the second wave as well