Israel to demand airlines reimburse customers until October 1: report

Airline firms, including El Al, will be obliged to reimburse customers whose flights were cancelled due to the coronavirus crisis until October 1, broadcaster Channel 13 reported Monday. The move is led by Economy Minister Amir Peretz and supported by Justice Minister Avi Nissenkorn. The outline was formulated with the agreement of Likud’s Transportation Minister Miri Regev. Companies that will not be able to prove at least a 70% income decrease will be required to return the sum to clients immediately. According to Channel 13, the decision means that El Al will have to reimburse more than NIS 1b ($290m). El Al came to an agreement with the state a little less than a month ago which includes a bailout plan, in effect nationalizing the airline. Following the agreement, the owners and the management workers committee signed a deal in which 1,500 employees will be laid off in order for the company to receive NIS 250m from the government. However, the pilots have not yet signed the new deal, and unless they do so, the bailout funds could come off the table.<br/>