Israel's Arkia issues B747 freighter wet-lease RFP

Israel dangles $50mn more aid before El Al - with caveats

Israel’s Ministry of Finance has told El Al Israel Airlines (LY, Tel Aviv Ben Gurion) that it can provide a further USD50 million in aid to the struggling flag carrier, on condition that the airline sell some of its aircraft and a “significant” stake in its Matmid Frequent Flyer Club. Controlling shareholder Kenny Rosenberg must also inject USD43 million of his own cash into the company as an owner’s loan.

The sum, offered in a letter from Ram Belnikov, the ministry’s director general, is just one third of the USD150 million El Al had been hoping to receive in the wake of extended government restrictions on international travel.

The company said in a Tel Aviv Stock Exchange filing on September 9 that it had received the letter - which it attached - on September 6 and that it “is examining the letter and is continuing its contacts with the Ministry of Finance.”

The three-year loan would come in the form of bonds convertible into shares, without guarantees and without interest, and the shares would...

Israel to give El Al, Arkia, Israir more loans - report

Less than four weeks after Israel’s airlines appealed for more government funding, the Ministry of Finance said it had agreed in principle an assistance package to help El Al Israel Airlines, Arkia Israeli Airlines, and Israir.

The state will provide a two-year balloon loan, one that does not amortise during its term leaving the borrower to repay in full at the end of the term, to each carrier as long as the controlling shareholders pump more of their own capital into their companies, a source at the ministry told the Hebrew-language business daily Calcalist on August 24.

The exact size of the sums and the proportions between state-injected and owner-injected amounts have not yet been determined. Still, the official estimated that El Al would need USD150-200 million, and Arkia and Israir USD20 million each.

The funds would be provided through convertible bonds without interest, giving the airlines “peace of mind over the coming period. The companies won’t have to repay for two years, and after two years, they can convert the loans to...

El Al seeks more aid amid mounting losses, auditor’s warning

El Al Israel Airlines (LY, Tel Aviv Ben Gurion) chief executive Avigal Soreq has reiterated in the company’s latest financial report, filed with the Tel Aviv Stock Exchange on August 18, that the privately owned flag carrier will need more state aid. The carrier has agreed debt deferrals with “thousands of suppliers”, he said, while Deloitte, the accounts’ auditor, again warned of a significant doubt about El Al’s status as a going concern.

The airline posted a net loss of USD80 million for the second quarter of 2021, down slightly from the USD104 million loss in the same period last year. Revenue for the quarter stood at USD222 million, up from USD151 million in the second quarter of 2020.

“The spread of the Delta variant obliges us to adapt our expenses to the scope of our business. In addition, we need a further aid package from the state, in light of the new restrictions on our activities, just as El Al’s competitors are receiving subsidies from their governments, giving them an unfair competitive advantage,” Soreq...

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