El Al extends passenger flight suspension to August 31

El Al CEO Gonen Usishkin Photo: Sivan Faraj

The airline has also extended the unpaid leave of 95% of its employees until August 31.

El Al Israel Airlines Ltd. (TASE: ELAL) has announced, as expected, that it has extended the suspension of its scheduled passenger flights until August 31. Accordingly, CEO Gonen Usishkin has extended the unpaid leave of employees until August 31.

At present 95% of El Al's employees are on unpaid leave. At the same time El Al's debt to passengers who has purchased tickets for flights that have been cancelled is swelling to about NIS 1.5 billion.

In a letter to employees Usishkin pointed out that an agreement had now been signed with the pilots, which will result in a further $105 million savings for the company. El Al has now signed agreements with all four of the airline's workers committee - a precondition for receiving government assistance.

Usishkin stressed that El Al's streamlining plan would mean many layoffs, lower salaries and foregoing benefits. On an optimistic note he stressed that El Al will exploit its relative advantages and adapt itself to the new reality and competition.

Published by Globes, Israel business news - en.globes.co.il - on July 16, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

El Al CEO Gonen Usishkin Photo: Sivan Faraj
El Al CEO Gonen Usishkin Photo: Sivan Faraj
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