Airlines around the world are close to collapse due to almost total stoppage of flights around the world. On Tuesday, passenger traffic in the United States plunged 95%. About one hundred and thirty thousand passengers flew, a volume similar to the 1960s passenger movement. The situation in Israel is similar too. EL AL is close to collapse and the Finance Ministry has no willingness to assist the company as it requires. The Treasury rejected a request for aid of NIS 700 million. In spite of the controversy, El Al conducts Israeli rescue flights from around the world and supplies medical equipment from China and South Korea. Israeli and Arkia companies also carry out international flights.
At Israir. the company is expected to receive a state guarantee of 75% for a loan of NIS 100 million from the International Bank and Mizrahi Tefahot Bank. The loan will be granted for a period of three years, with the first year of Yair, managed by Uri Sirkis, not required to repay principal and interest payments.
Israir, like the other two Israeli airlines, El Al and Arkia, was severely hit by the Corona crisis and had to disable all its passenger flights and settle for Israeli flights and rescue flights.
The company also struggles with controlling shareholder Eduardo Elstein, controlling shareholder of IDB Development, which received a $ 5 million loan from Israelier whose repayment period was extended several times by the end of March 2020. However, ID Development did not meet the due date and sent Israir to seek Finance Ministry Assistance.
At Arkia, they initially announced their intention to dismantle the company, but within a short time they returned, even though the situation is extremely serious financially in Arkia.
European aircraft maker Airbus has announced that it is reducing production due to the impact of the Corona epidemic on orders. It was decided to cut the volume of 320 Island aircraft production by 40 percent and produce about 40 aircraft a month. At a similar rate, the volume of production of the larger planes will cut 350 islands and produce six aircraft a month. The company will produce only two Island 330 aircraft, down nearly fifty percent
Company CEO Guillaume Puri said airlines around the world are collapsing and there is concern that the global aviation industry will be laid off for twenty-five million employees
Last week, Boeing announced that it was also planning real cuts to aircraft production in all its models.
Cautious optimism in South Korea. Central Bank Governor Lee Ijian believes growth in South Korea will be positive even though it will slow down due to the Corona epidemic
The Governor decided at this time not to reduce the interest rate and left it at three-quarters of a percent
The Governor estimates that growth may reach one percent. Before the outbreak of the virus, the central bank estimated that growth in South Korea would amount to about two percent and two tenths.