Three Israeli airlines on the road to collapse • El Al Chairman warns: "If we disappear - the state will lose huge volumes" • Israir's CEO and Arkia chairman call for consolidation

• EL AL planes // Photo: Moshe Shay

Israeli airlines have come to the realization that the industry in the country will not return to being the day before the Corona crisis.

Until the Crisis - The big airline El Al operated 45 aircraft to about 60 destinations around the world. In recent years, the company has received 15 Boeing 787 aircraft (Dreamliner) and significantly expanded its targets. In recent weeks, the company has landed on far-flung destinations, including Colombia, Costa Rica, Australia, Peru and probably Argentina as well, as part of Israeli rescue operations stranded abroad during the Corona Challenge.

A few weeks ago, well before the peak of the crisis, El Al reported to the stock exchange its latest numerical report. Already, the hit was $ 160 million. Al Al applied for assistance with the Finance Ministry's streamlining plan, which has not yet responded

"Each state must maintain its own industries, and aviation rolls billions and enters billions into the country," says El Al Chairman Deeps. "Tens of thousands of aviation-supported workers pay taxes, and if the state fails to nurture this industry, the vacuum will not remain empty. Here foreign companies and the taxes will be paid in those countries. The taxes asked about paying the state treasury and she does more things with it. "

He said, "The state has a gold share in El Al, which means that the company is obliged to hold only Israeli pilots and so the planes belong to the state whenever it needs them, in any emergency. We are surrounded by hostile states and without strong local aviation we will be in a very problematic situation."

After submitting Al's plan to the Treasury's Efficiency Plan, the company hoped to get an answer regarding the loan. The company asked for $ 400 million as a loan and another $ 200 million as a guarantee. So far, the Treasury has not responded and the appeal of "Israel Today" chose the treasury not to address. By comparison, in Singapore, the government announced it would invest no less than $ 13 billion in the airline, and in the United States it announced that it would invest about $ 58 billion.

Eli Deeps addresses this issue, saying: "The Treasury is not responding to this is one of the big disasters. Billions upon billions are being given to their airlines worldwide. We submitted a streamlining program two weeks ago and it lies with them unresponsive. Even if there is a good but late response, it can Being irrelevant no longer. "

El Al does not argue with the fact that the volume of work and practices that existed so far did not match the size of the company and the scope of its operations. The company is up to six weeks in total collapse, so all the experts in the field estimate. The major airlines in Israel also support corporate consolidation, as well as Arkia and Israir, and to the extent that the competition authority approves the consolidation, there will be a reduction and consolidation of companies.

"Only if we get a loan can we survive"

Meanwhile, Israir and Arkia are undergoing streamlining processes, with Israeli CEO Uri Sirkis and Arkia chairman and Nakash group Avi Hurmero confident: the state must help with long-term loans and immediately approve consolidation.

"We got into a different situation from the other airlines, and this is after we implemented a streamlining plan," Sirkis explains. "During the crisis, we are making sharp adjustments, and we are currently active by the end of the week, which will result in almost 40 rescue flights. We also carry a daily cargo flight to London and hold "The line to Eilat with 3-2 daily flights. We did not take our pilots on vacation for free. We keep everyone qualified with a 60 percent pay cut."

Israir asked the state for a loan of NIS 100 million. "At the moment, Israir has a cash flow that will suffice until May without aggressive actions," Sirkis notes. "We believe Treasury decisions will be made in the coming week, and only if we get the loan can we survive."

At the same time, Arkia's chairman, Abby Hurmero, points out that the company needs a $ 25 million long-term loan in order not to close. "One must join one of the three airlines and, if not, one must immediately unite between Israir and Arkia."

Pilot Association chairman Midan Barr says: "Airline assistance is twofold: one - to see that an airline does not close, and then there is a regulatory element that will be very difficult to rebuild, and two, world countries are helping their airlines to be ready for the day after. . So, all countries will want airlines to recover, because that is what will restore the economy. Every day that passes and there is no Israeli aid like all the countries of the world do, means - more weakened aviation as the crisis nears its end. Lack of assistance today is the end of Israeli aviation in the near future. "

A world-wide crisis

Israeli Airlines Not Alone: ​​The World Crisis Crisis. Low Coast companies Easy Jet and Rainier will ground all their planes in April and May and place them at the disposal of European governments to transport medical equipment.

Big companies such as British Airways, Virgin Atlantic, Singapore Airlines and Lufthansa have already declared more than 90 percent reduction in activity, and are only a fraction of the tens and even hundreds of companies that suffer similar damage. El Al, Israir and Arkia have stopped all their international operations on regular flights.

Companies that are still operating on a small scale, such as Emirates and American Airlines, have also landed most of their large-body aircraft due to low demand. The Australian Cantas and the Dutch KLM are currently taking their entire Jumbo fleet (747) into retirement sooner than expected, and El Al converted the Triple 7 to cargo planes and removed the passenger seats. American Delta Company will fly medical personnel in the US, free of charge.

The airlines that operate international flights to and from Israel are British Airways, Ethiopian Airlines, KLM, LATAM, Belarus, Aeroflot and United. The picture may change every day.