Israel To Bail Out El Al, Could Gain Full Control

JERUSALEM (JNS) – Israel’s Finance Ministry on Sunday proposed to loan $250 million to El Al, far short of the $400 million the struggling airline had asked for.

However, the government could end up nationalizing the airline, as it committed to purchasing any shares not bought by the public in an offering meant to raise the remaining $150 million, Israeli business daily Globes reported.

The Borovitz family currently has a majority stake in the airline and is probably not going to take part in the offering on the Tel Aviv Stock Exchange.

El Al was privatized 15 years ago and the airline is studying the offer, according to the report. Any agreement reached would also need to be approved by the Cabinet and the Knesset Finance Committee.

El Al announced last month that it was extending its suspension on commercial flights until June 20 as a result of ongoing coronavirus outbreaks, though it would continue with cargo and special passenger flights.