Israel to demand changes at flag carrier El Al before bailout loans

The Israeli government will demand that El Al carries out an overhaul, including layoffs, before agreeing to throw a lifeline to the cash-strapped airline, officials said Sunday. El Al is seeking state-backed loans of $400m to help it through the coronavirus crisis, as foreigners are barred from entering the country and incoming Israelis must enter quarantine. The airline suspended passenger flights until at least the end of May while about 6,000 of its workers are on unpaid leave until June 30. However the government argues the airline's problems, including a bloated workforce, high salaries and a weak balance sheet, began well before the COVID-19 outbreak. Cabinet ministers and senior finance ministry officials drafted a plan late into Sunday that would help them feel confident the company would be able to repay a loan. The next step is to present the proposal to the airline, according to a ministry spokesman.<br/>