Airline El Al Israel gives public loan back
Airline-finance ministry agreement to anticipate reimbursement
National airline El Al Israel will repay a 45 million dollars loan received from the Tel Aviv government during the pandemic by the end of the year. This is the result of an agreement reached between the air carrier and the ministry of finance which provides for the repayment of the sum two years in advance. At the moment, the airline will not yet be able to pay dividends or buy back own shares until 2028.
"I am sure that the move will lead to improving El Al's ability to grow and face a competitive market and an evolving reality, consolidating the company's growth and improving its results, in order to create management flexibility, also in light of of the growing demand for travel", said airline CEO Dina Ben Tal Ganancia.
The executive loan was part of a government package to help the airline overcome the pandemic crisis, which resulted in a collapse in revenue and profits and 1900 layoffs, nearly a third of its staff. The loan repayment will ease a number of spending restrictions, which will allow the airline to upgrade routes, hire staff, charter new aircraft and make new investments.
AVIONEWS - World Aeronautical Press Agency