\n \n \n “. concat(self. i18n. t(‘search. voice. recognition_retry’), “\n
By Steven Scherer
JERUSALEM (Reuters) – Al Israel Airlines plans to repay a $45 million loan it obtained from the government over the COVID-19 pandemic until the end of the year, as part of a deal between the airline and the Finance Ministry, they said. on Sunday. .
The loan was part of a government program to help the airline overcome the crisis, in which Israel’s borders were closed to foreign tourists for about two years, plunging the Israeli airline’s revenue and profits.
The ministry and El Al said the loan repayment would be advanced two years from schedule, but under the agreement, El Al’s planned $62 million percentage provision would be delayed until April 2023, while the state will advance El Al’s security bills by $20 million. . before 20 December.
El Al, which has suffered losses for 4 years and has accumulated debts to renew its fleet, laid off 1,900 workers, almost a third of its workforce, as part of a stimulus package ordered by the government to obtain $210 million in aid at the peak of the crisis. pandemic.
The loan repayment will ease a number of spending constraints on El Al and allow it to upgrade its management network, onboard staff, hire new aircraft, invest in operating capital and expand new sources of profit, he said.
El Al will still be able to pay dividends or buy back its own shares until 2028.
“I am confident that this resolution will enhance El Al’s ability to grow and cope with a competitive market and turn reality,” said Ceo Dina Ben Tal Ganancia.
(Reporting through Steven Scheer; Editing via Elaine Hardcastle)