El Al negotiating $300mn 82.5%-state-backed loan - reports

Israel’s El Al starts to fire a third of its workforce

As it continues talks to obtain a USD300 million loan from Bank Leumi, Israel Discount Bank, and other financial bodies, armed with an 82.5% state guarantee, El Al Israel Airlines (LY, Tel Aviv Ben Gurion) has begun to implement one of the conditions of that rescue plan - to streamline its workforce, local media have reported.

The layoffs would go into effect only after receiving confirmation of the state-backed loan, although even after that, unions reserve the right to swap up to 15% of the people on the list of intended layoffs.

The redundancies would affect 1,600 staff, both temporary and permanent, and in all the airline’s departments. The first of these employees began to be notified this week by human resources to attend hearings on the issue.

Among those to leave are 71 of the carrier’s 638 pilots, in addition to 32 pilots who were laid off in 2020 and 40 others who departed voluntarily.

Sharon Ben-Yitzhak, chairman of the El Al Workers’ Union, told the financial daily Globes that those who will...

El Al shareholder intent on securing $375mn rescue

Banks insist on new El Al cash injection before giving loan

With the market conditions for passenger aviation only worsening, in particular with Israel’s prolonged lockdown, banks are now demanding that El Al Israel Airlines (LY, Tel Aviv Ben Gurion) controlling shareholder Eli Rosenberg inject an additional USD75 million into the carrier before they provide the company with a vital loan, the financial daily Globes reported on February 2.

Rosenberg bought a controlling 42.88% stake in the privately-owned flag carrier for USD150 million in a public offering on the Tel Aviv Stock Exchange in September 2020. As part of the Ministry of Finance’s rescue plan, Rosenberg and his management team are expected to take loans from banks or offer bonds to institutional investors with state guarantees.

The initial plan from last year specified the necessary sum of USD250 million, 75% covered by the government, but last month the ministry agreed to raise this to USD300 million while offering an 82.5% guarantee.

However, the shutdown, tightened with the closure of Tel Aviv Ben Gurion to all but essential flights, has further depleted the airline’s cash reserves...

Tel Aviv, Israel temporarily closed because of COVID-19

Israel’s Tel Aviv Ben Gurion airport has closed to foreign-registered aircraft from January 26 until January 31, 2021, except for cargo flights, medical emergency evacuations, and firefighting flights.

This follows restrictions on the operations of airports and flights effective from 0001L (2201Z) on January 26 until 2359L (2159Z) on January 31, 2021, an airport statement said.

The Israeli government recently decided to return the country to a state of lockdown from 0000L on January 13, 2021, as it looks to keep out new strains of COVID-19.

The airport said Israeli aircraft would be permitted to land, but only for reasons "for which an operating permit was not required according to the country’s Aviation Services Licensing Law".

All inbound passengers, whose arrival was approved under the specified exceptions, are subject to special approval, health declarations, home or State quarantine, and negative PCR tests.

Passengers are only allowed to leave Israel with prior permission from the Health and Transport ministries and under certain conditions, such as needing medical treatment, attending a funeral, or for legal reasons....

Editorial Comment: Removed Izhavia from list of airlines serving Tel Aviv. - 27.01.2021 - 06:41 UTC