The Ministry of Finance has offered El Al Israel Airlines Ltd. (TASE:ELAL) $50 million in assistance, only one third of the amount that the financially troubled carrier was hoping to receive, following the restrictions placed on international travel by Israel's Ministry of Health.
El Al today received a letter from Ministry of Finance director general Ram Belnikov offering the $50 million grant, and insisting that in exchange El Al sell some of its aircraft and a major part of its frequent flyers club. The grant is also contingent on controlling shareholder Kenny Rozenberg injecting $43 million into the company, as an owner's loan.
The $50 million grant on offer to El Al would be in the form of an unlinked bond convertible to shares, without guarantees and without interest.
Meanwhile the Ministry of Health restrictions in force in August were eased somewhat on September 3. Previously all Israelis returning from virtually every country worldwide were required to undergo at least seven days quarantine. However, Israelis who have been double vaccinated from most countries worldwide are now exempt from quarantine when returning from abroad.
To cope with the situation, El Al requested a $150 million grant from the Ministry of Finance, Arkia asked for $35 million and Israir asked for $20 million. The Ministry of Finance has offered Arkia and Israir a $7 million grant each.
Published by Globes, Israel business news - en.globes.co.il - on September 9, 2021
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