El Al resumes flights: First cargo flight in 4 days and passengers will fly to Athens October 10th

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by Ifi Reporter Category:Financial Sep 17, 2020

El Al will gradually resume passenger and cargo flights. Passenger flights will start over the next month. The company was completely shut down about four months ago. El Al will resume cargo flights in four days to Shanghai, Bombay and Hong Kong. In addition, the company will operate charter flights as needed
From the beginning of next month, EL AL will operate regular flights to Athens. Sun Dor, a subsidiary of El Al, will offer charter flights to several destinations in Greece and Croatia through selected tourism wholesalers in Israel. On October 12, El Al will resume operations to its flagship destinations - New York, London and Paris

An american yeshiva student Eli Rosenberg is expected to be the new controlling shareholder in the company, and according to his official announcement, he holds 42.9% of the company's share capital. NIS 505 million was raised in an issue that was completed recently.
Because this is a public share issue in which the identity of the purchasers is still unknown, the allotment of the shares to all participants will be finally clarified later. Beyond Rosenberg's announcement, the state also participated in the IPO and is expected to become a less central shareholder in the company, and in any case waived its voting rights, as the state's participation was primarily intended to inject money into the company through the IPO for its operations.
If the current controlling shareholder in El Al, Kanfaim, which on the eve of the issue held 38.3% of the company's share capital, did not participate and did not flow demand for shares issued by EL AL today, then Kanfaim is expected to fall to an estimated 14% to 16%. The state is expected to hold between 13% and 15% of El Al and it has announced that it will not use the voting rights that will be granted to it. The offering was led by Leader Underwriting together with Leumi Partners and Orion.
The issue closed at the minimum price set at 67.1 agorot per share. El Al issued 753.3 million shares and is therefore expected to receive NIS 505 million. As part of the offering, the state offered 395 million shares and cash flow to the company about NIS 265 million.
The new controlling shareholder in El Al Rosenberg is a 26-year-old man living in Jerusalem. Rosenberg is the son of Naftali Rosenberg, a religious Jew from New York who deals in income-producing real estate and owns, among other places, hotels and nursing homes in the United States. .
The Rosenberg family's immediate mission will be to move forward with negotiations with the banks for a $ 250 million state-guaranteed loan to inject capital into EL AL's drained coffers. From the IPO money raised today, El Al's Israeli customers are expected to receive a cancellation fee of NIS 400 million by October 1.
As far as is known, after introducing the new company's board of directors, Rosenberg is expected to replace the current EL AL management. It should be noted that the pilots' committee, which behaved suspiciously towards the current management, welcomed the change of ownership in the company and was intended from the beginning with Rosenberg's representatives. The latter promised the pilots that they would be able to receive options that would yield them profits, if El Al succeeds in recovering from the crisis in which it finds itself.
It is to be expected that Rosenberg will be forced to distribute options to the rest of the company's employees as well - including the maintenance workers who bear the majority in the workers' representation and will not be willing to discriminate in this respect vis-à-vis the pilots.
On behalf of Eli Rosenberg's Aviation Eagles, it was stated that the company is proud of the results of the public offering of the national airline El Al. It was also reported on behalf of "Eagles Wings" that the company "takes great responsibility to restore passenger confidence, ensure the employment of thousands of EL AL employees, and lead Israel's airline to a secure future. Throughout the last few months" Wings Eagles "has shown seriousness Commitment and financial capability that will help heal El Al. "

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