El Al is saved by the government of Israel
The government of Israel is going to offer El Al Airlines a $250 million rescue package. The management of El Al has agreed to the rescue package. This will probably make El Al a state-owned company. El Al had just been privatized earlier. El Al has to issue shares for 150 million dollars. The Israeli government is going to buy them if no private parties come forward. If the state buys most of the shares, it gets the most shares.
El Al Airlines has been in financial trouble for several months due to the corona crisis. Last week all flights were even stopped due to a conflict with the employees. The Israeli state considers El Al Airlines too important to let it go bankrupt. It is not the intention that El Al Airlines remains a state-owned company. As soon as the airline is able to operate under its own steam, a takeover candidate will be sought.
(c) Photo: El Al Airlines – Boeing 787