According to the Jerusalem Post, Israeli flag carrier El Al is likely to close if the government does not provide financial assistance within the coming days.
“Negotiations have been ongoing between the Finance Ministry and Israeli airlines for approximately two months, Finance Ministry economist Eli Morgenstern told the Knesset committee. Morgenstern insisted that a rescue package must include both government-guaranteed and bank-guaranteed loans.”We believe that within one to two years, we will be profitable and can return the loan,” El Al chairman Eli Defes told the committee, accusing the Finance Ministry of stuttering in its efforts while other governments roll out financial assistance plans to aid airlines.
“On Thursday, El Al said that it would continue to ground all scheduled flights to and from Israel until May 2, with the exception of “rescue flights” to repatriate Israeli nationals abroad and some cargo flights.
“More than 380 hotels are currently shut nationwide, and a further 17 have been rented out to house coronavirus carriers, Israel Hotel Association president Amir Hayek told the committee.
“With 30,000 employees on unpaid leave and a further 7,000 made redundant, the tourism industry “is bleeding between NIS 150 million to NIS 200 million on a monthly basis, said Hayek.
Israel enjoyed another unprecedented year of incoming tourism in 2019, with approximately 4.55 million tourists visiting the Jewish state. Incoming tourism during 2019 injected approximately NIS 23 billion into the economy.
Edited by Ian McIntosh
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