El Al reaches bailout deal with government

El Al said Monday it had reached a bailout deal with the Israeli government that could lead to its nationalization after being crippled by the coronavirus pandemic. The airline had been in talks on a rescue package for weeks after suffering from the steep decline in air travel sparked by the virus. Since the outbreak, it has suspended passenger flights indefinitely and carried out scores of layoffs. Under the deal, the company will receive loans of $250m, most of which will be guaranteed by the state. The company is expected to raise an additional $150m by selling shares that, if they aren’t sold entirely to the public, will be bought by the state. The agreement awaits approval by a parliamentary committee. “This evening the first step was taken to return El Al to the runway,” said Transportation Minister Miri Regev. “We will work to assist the company during the interim as is needed with the aim of protecting Israel's aviation independence.” The company was previously state-owned until it was privatized more than 15 years ago. <br/>