Israel’s Ministry of Finance offered El Al Israel Airlines a $50 million aid package today. The company was already having financial problems before the Covid crisis began but has been hit especially hard by the Coronavirus pandemic.
But there is a catch. Kenny Rozenberg, El Al’s current owner, must also loan the company $43 million out of his own pocket if the airline is to receive the funds. The airline will also be required to sell off some of its planes.
El Al was reportedly hoping on getting as much as $150 million in government aid as compensation for all of the lost revenue caused by government-required shutdowns and limitations on travel.
The Ministry of Finance has also offered Israel’s other two airlines Arkia and Israir a $7 million grant each. Israel’s smaller air carriers had asked for much more than that with Arkia asking for a $35 million bailout and Israir asking for $20 million in government aid.