El Al has suspended flights; the existence of the airline is in doubt

Created on 24.07.2020 11:23

El Al Israel Airlines, a flagship Israeli airline, has terminated indefinitely all flights due to protracted negotiations with the Ministry of Finance on the issue of a state-guaranteed loan of $ 400 million.

Decisions to suspend a flying activity has appeared since El Al announced financial results for the first quarter, showing a net loss of $ 140 million over a three-month period.

Experts are wondering if the carrier's actions are a tactic of exerting pressure on the State in order to receive financial assistance or the company intends really to terminate the activity. Prime Minister Benjamin Netanyahu previously has assigned the Ministry of Finance to prevent an airline collapse.

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