Israel Approves $400MM Bailout For El Al

24
DDMS IconNever Miss Another Deal - Follow DansDeals on Facebook

Ynet reports that Israel has approved a $400MM bailout of El Al.

The offer comes with strings attached, including requiring the lead shareholder to inject $28MM into the airline, increase airline efficiency, lower executive payments, among other state demands.

El Al has yet to respond to the offer.

I gave suggestions to multiple El Al executives in the past on how they could improve and be more profitable, but none were implemented. The interviews were off the record on condition of El Al media relations approving them, which never happened. El Al continues to treat Matmid as a cost center instead of a profit center, as US airlines have long since figured out.

Hopefully the bailout means that El Al will start processing refunds for flights that they cancelled?

HT: D93

Leave a Reply

24 Comments On "Israel Approves $400MM Bailout For El Al"

All opinions expressed below are user generated and the opinions aren’t provided, reviewed or endorsed by any advertiser or DansDeals.

Sort by:   newest | oldest
Yandmk

“lower executive payments”?
They’ll probably turn it down…

Jack out of the Box

I hope it doesn’t include my tax Shekels.

Chaim

Is D93 back on DDF?

Tavster

Lots of strings attached, far from a done deal.

%

Maybe now when their closed down you release the interviews

Reader

Waste of money they should just let United and pay United and American To increase flights.

El Al must be saved

National security

El Al must be saved

In the interest of national security, Israel must have at least one Israeli airline. Just like Switzerland has bailed out SwissAir more than once. Just far more urgent.

For what

Urgent for what there are enough flights out of TLV with carriers doing double the job for half the cost. Just another rich family that wants to get bailed out by taxpayers shekels.

Moshe

not at all..In time of war and crisis, Elal is there time and time again as the only airline to fly to Israel. Yes they are bloated, have too many employees and a top heavy cost structure. But that is exactly what the bailout terms are addressing.

David

It’s more like a loan than a bailout

David

why?

BA

Hope they bancktupt
They will never refund
But if they bankrupt cc will

Tammy

ElAl should offer better and lower deals so they compete with Delta and United.

Dave

If both sides approve, I wonder what “tricks” ElAl has planned for their business resuming (particularly USA- TLV). Does that mean a Basic Economy Class= charging for carry on and 1st checked baggage? Does that mean charging for meals, snacks, and drinks? Does that mean drastically raising their points for a ticket? Orlando and Las Vegas flights probably won’t resume. Chicago flights will take a back burner.

Moshe

@Dan one thing they have learned from US airlines is how to make money from credit cards. I don’t remember the exact numbers but there Israeli credit card is tremendously profitable.

wpDiscuz