19.05.2021 – 05:21 UTC
Israeli carriers El Al Israel Airlines, Israir, and Arkia Israeli Airlines have been conducting rescue flights for Israelis stranded abroad, as international airlines cancel flights to the country as a precaution against rockets fired from Gaza.
El Al said in a statement to local media that it would “work to keep air routes to and from Israel open, even amidst the security threats, in all situations in which it is possible to fly.” It was ready, it stressed, to operate additional aircraft to make up for shortfalls from foreign carriers.
American Airlines, Delta Air Lines, United Airlines, Lufthansa, Air France, KLM Royal Dutch Airlines, Iberia, and British Airways are among the airlines that have put their flights to Tel Aviv Ben Gurion on hold. Ethiopian Airlines and flydubai continued to operate, the newspaper Haaretz reported.
Palestinian militants have shelled the Tel Aviv area repeatedly since the conflict erupted on May 10, prompting Israel’s main airport to reroute some flights to Eilat Ramon,…
11.05.2021 – 04:38 UTC
Israel’s government approved a bailout package for El Al Israel Airlines (LY, Tel Aviv Ben Gurion) and Israir (6H, Tel Aviv Ben Gurion) on May 9 in which the state will transfer USD210 million and USD16 million to the airlines, respectively, ostensibly to cover their security costs, the country’s Finance Ministry announced.
In the scheme, which follows the support of the parliamentary finance committee last week, the state agreed to pay a lump sum that would cover 20 years of tickets for flight security officials at the two carriers. The amounts provided will not change even if there are variations in the volume of tickets required in accordance with security guidelines.
However, the assistance is conditional on shareholders also contributing to strengthening their companies’ financial stability, with El Al for example having to issue USD105 million in new shares and freeze dividend allotments for the next five years. The shareholders of each company must agree to issue shares to increase the companies’ capital by 50% of the amount of aid provided.