El Al Israel Airlines Ltd. (TASE: ELAL) has notified the Tel Aviv Stock Exchange (TASE) that it has signed a memorandum of understanding (MoU) to sell three of its planes to a foreign company for $76 million in a sale and lease back deal. The deal with a US company is part of El Al's streamlining plan to enable it to survive the coronavirus crisis. RELATED ARTICLES "Link Israeli airlines aid to customer refunds" El Al signs deal with Kuehne+Nagel for 150 cargo flights El Al will need to shrink to receive state aid El Al was struggling even before coronavirus The sale of the three planes, El Al said, is subject to the airline receiving a state guaranteed loan. The three aircraft involved in the deal are Boeing 737-800s, and their six engines, which were manufactured in 2009. The planes would be leased back for eight years. The Ministry of Finance's conditions for guarantees for an El Al loan include the reduction in the carrier's fleet of 45 planes to 35, a 25% cut in the number of routes it operates, and a 33% cut in the workforce, which would mean laying off 2,000 employees. Published by Globes, Israel business news - www.globes-online.com - on April 24, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020
