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
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24 Comments On "Israel Approves $400MM Bailout For El Al"
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“lower executive payments”?
They’ll probably turn it down…
I hope it doesn’t include my tax Shekels.
Is D93 back on DDF?
Lots of strings attached, far from a done deal.
Maybe now when their closed down you release the interviews
Waste of money they should just let United and pay United and American To increase flights.
National security
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.
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.
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.
And where are they now?
They did do flights to Peru, New Zealand and other destinations to bring home Israelis.
I am not an LY fan, but that doesn’t change the facts. I give credit when credit is due.
Hopefully, our government will follow through and insist that they cut out all the fat. I and most Israelis are not crazy about their service. But, we don’t want to see them fail.
They did so because Israel chartered flights to bring people from Peru home. They didn’t fly to New Zealand that I know about.
Bottom line is that only United has kept up daily flights to keep Israel connected to the world.
Israel should have a national carrier. But personally I’d start from scratch with a new airline and outlook on customer relations.
Regarding flights from South America I think 3 were donated by Elbit, one the government paid and one LY donated
Re NZ you are right, the flight was from Australia.
In any case I have been for years a strong advocate of LY closing down and reopening as a completely new company. Today I am not sure. For example will they be able to regain their slots in popular EU airports among other questions.
And yes they are not operating regular flights. The government doesn’t want them. The govt would also prefer UA stops since they brought us hundreds of Covid-19 carriers over the last couple of months, but they can not stop UA for diplomatic reasons.
לילה טוב מירושלים
They can transfer their slots to the new airline.
That’s not correct that the government doesn’t want them. El Al shut down flights as a negotiating tactic.
Israel can certainly stop United from flying without diplomatic issues as many countries have. I’ve heard the opposite is true and they’re subsidizing United to keep flying so that Israel isn’t totally isolated.
It’s more like a loan than a bailout
why?
Hope they bancktupt
They will never refund
But if they bankrupt cc will
ElAl should offer better and lower deals so they compete with Delta and United.
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.
@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.
Where is their US card?
In Israel, they are raking in the shekels, since there is no major competition with them on credit cards. The benefits they give are much much less then is standard on US travel cards. I assume the reason they don’t have a US card is that they don’t think it will be so profitable for them.
Elal had the HAS cc that was about to be there official cc but they double cross and left them hanging