Israel Weighs Options for El Al Including Bankruptcy
By Ivan Levingston
March 25, 2020, 5:32 PM GMT+2
Israel is considering options for El Al Airlines Ltd. that include a bankruptcy filing as the coronavirus outbreak wipes out demand for travel, according to people with knowledge of the situation.
Officials are also examining the scope for mergers involving El Al and Israel’s two other main airlines, Israir Airlines and Arkia Israeli Airlines Ltd., according to one person, who asked not to be named as the deliberations are private.
While radical steps are under consideration, discussions center on government-backed loans that would come in return for an efficiency plan including job losses and salary reductions, another person said, adding that the aid could total $500 million. El Al, which was struggling for profitability even before the pandemic, has already announced job workforce cuts and furloughs.