El Al must sell aircraft and part of frequent-flyer programme for state aid

El Al has been told it must sell aircraft and a substantial portion of its frequent-flyer programme as part of the government’s conditions for receiving financial aid. The ministry of finance had indicated in August that it was prepared to offer conditional support to Israeli operators. It has detailed its requirements in a 5 September communication to El Al, offering $50 million in return for the airline’s taking the “necessary steps” to improve its cash-flow. The ministry says El Al must undertake a sale of aircraft, specifying the number and types involved and the timeframe for the transaction. El Al must commit to selling a “significant portion” of the frequent-flyer programme, and provide details, the ministry adds. The carrier also needs to reduce repayments of its financial debt in order to relieve the pressure on cash-flow over the next 12 months and will have to provide monthly updates on payments.<br/>