The Aid for airlines that suffered loss of revenues: $ 85 million to El Al Israir and Arkia

The state aid scheme for airlines, which are suffering from a loss of revenue due to the omicron, is finally closed. The government approved the Ministry of Finance and Transportation's proposal to provide increased assistance in the amount of $ 85 million to the three airlines: El Al, Israir and Arkia.

This is after according to the outline formulated in November, the assistance to the companies was supposed to amount to only $ 41 million - that is, an increase in the assistance by $ 44 million.
The amount you will receive from EL AL has not yet been closed and it is estimated that it will be $ 50-45 million in a three-year interest-free loan. The loan will be given to companies through bonds converted into shares. In addition, for the first time, the government approved additional assistance: a 20-year advance payment for excess fuel expenses and maintenance related to the Sky Shield system - an aircraft protection system against missile attacks, with EL AL's share in an estimated $ 10 million.
 A similar method was used with the assistance of $ 210 million that EL AL had received in the past, when the deal included the state paying in advance for a 20-year participation in the salaries of EL AL's security staff.
The details of the outline reveal that it includes significant relief for the controlling shareholders of the airlines, headed by Kenny Rosenberg, the controlling shareholder in El Al - the big beneficiary of the aid pie: so far the state has demanded that the controlling shareholders pay the company the same amount Every dollar of state is required by the controlling shareholder to inject additional dollars. Thus, in the latest aid scheme to El Al in the amount of $ 30 million Kenny Rosenberg to inject a similar amount. The state now announces that it will require a mitigating ratio: for every three dollars of the state shareholders will be required to inject only two dollars. That means Rosenberg will be required to inject about $ 30 million into God, assuming she now receives $ 50 million. The news that the outline of aid along the way has boosted El Al shares since the beginning of the year by 55%, including an increase of 1.18% today.