There are two Israeli domestic airlines performing regular scheduled Internal flights in Israel: Arkia Israel Airlines and Israir Israeli Airlines, offering flights to / from Tel Aviv - Eilat - Haifa , but they are strained along with the flag carrier El Al Israel Airlines due to the Covid-19 delta variant infections.
Coming forward to help the aviation sector, Israeli cabinet members approved an additional bailout plan for airlines further harmed by the spread of the Delta strain of the coronavirus, the finance and transportation ministries said in a joint statement on Sunday.
Reuters sources say , Total state aid would not exceed $44 million for all of Israel's carriers and would come in the form of three-year bonds which do not accrue interest.
A publicly traded airline will have the option to convert a bond into shares allotted to the state at maturity. In that case, the state would not hold more 24% of an airline's equity and would not have voting rights.
Transportation Minister Merav Michaeli said the plan balances the government's responsibilities with those of airlines' controlling shareholders.
It "benefits the Israeli public first and ensures the stability of the companies and their employees," she said.
Israel's airlines -- flag carrier El Al Israel Airlines , Arkia and Israir -- have been hit hard during the COVID-19 pandemic with the country's borders largely closed to foreign tourists since March 2020.
Since the start of November, tourists who have been vaccinated against COVID-19 can enter the country within six months of their last dose.
El Al, which is in talks to buy Israir, requested $100 million from the government in September as compensation for its strict travel policies.
The airline has reported losses for three years and racked up debt to renew its fleet. It laid off 1,900 employees - nearly one-third of its staff - as part of a recovery plan mandated by the government to receive a $210 million aid package earlier in the year, and reduced its fleet to 29 from 45.
However, the air travel sectors to Israel are increasing ! In another development , last month , after 42 years of Peace agreement , for the first time , EGYPTAIR Airbus A220 aircraft landed in Tel Aviv, Israel signaling a Paradigm shift and signaling the start of the Egypt - Israel - Egypt travel corridor !
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