Jerusalem, (Asian independent) The Israeli Finance Ministry has agreed to guarantee 80 per cent of a $400 million loan to save the country’s flag carrier, El Al amid the COVID-19 pandemic.
However, to receive the guarantee, El Al will have to cut expenses by at least $50 million, while the owners have to immediately inject additional $28.5 million to the company, Xinhua news agency quoted local media as saying on Sunday.
Since 1948 when it was founded, El Al had been a government company until 2004 when it moved into private hands.
Following the pandemic, the company had to stop most flights, put about 6,000 employees on unpaid leaves and announced its risk of going bankrupt.
