Eli Rozenberg has been granted a permit by the state to control El Al Israel Airlines Ltd. (TASE: ELAL). The permit has been given to Rozenberg, who is only 26, and lacks business and managerial experience, on condition that he appoints a board of directors and CEO with at least five years of experience of management in the aviation sector, or who have previously been senior executives with publicly traded companies.
Kanfei Nesharim Aviation, the holding company set up by Rozenberg to control El Al, said, "We will restore customer's confidence in the company and with cooperation from employees, we will put it back on the runway for takeoff."
The first challenge facing El Al is the many thousands of customers seeking refunds on tickets for flights that have been cancelled since March. From October 1, the airline is legally bound to repay passengers for these tickets.
Despite personal attacks on Rozenberg by El Al's board of directors and previous controlling shareholders Knafaim Holdings Ltd. (TASE: KNFM), he prevailed after buying a 43% stake in the airline for $107 million in last month's public offering.
Kanfei Nesharim Aviation said, "With receipt of the permit, Kanfei Nesharim Aviation will contact El Al immediately in order to replace the company's board of directors and allow it to begin to manage the company while setting the necessary priorities for recovery. Kanfei Nesharim Aviation intends appointing to the El Al board of directors leading professionals with major experience in the areas of finance, law, aviation and security. We plan acting immediately to raise $250 million in additional debt from banks with a 75% guarantee from the State."
Earlier this week El Al restarted passenger flights with scheduled flights to Greece. But the resumption comes at an awkward time with the government barring anybody from flying abroad who did not buy tickets before the current lockdown started on September 25.
Published by Globes, Israel business news - en.globes.co.il - on October 2, 2020
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