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Israel increases state aid plan for COVID-hit airlines -Breaking

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© Reuters. FILEPHOTO: A plane belonging to Israel El Al is seen following landing at Nice airport international in Nice (France), April 4, 2019. REUTERS/Eric Gaillard/File photo

JERUSALEM (Reuters). Israel’s cabinet approved Sunday additional state aid to assist airlines in the wake of the Omicron Coronavirus strain spreading. This was according to the transportation and finance ministries.

The total state aid to Israel would not exceed $85million for Israel’s carrier carriers. It would be in the form three-year bonds that do not earn interest. This is an addition of $41 million to the November package, according the ministry.

Flag carrier El Al Israel Airlines Arkia, and Israir were among the most severely affected by the pandemic. Since March 2020, Israel has been closed to tourists from abroad.

Israel opened its doors to vaccinated aliens, those with COVID-19 recovery, earlier this month. It also ended the so-called red list of countries it considered off-limits for Israeli citizens.

Omicron’s variant pushing Israel’s infection rate to new heights meant that travel restrictions were considered moot. Omicron still has a negative impact on travel.

The statement stated that Omicron has led to a drop in activity by Israeli airlines due to “the spread of Omicron throughout the world and Israel.” The transportation and finance ministries worked hard to create a blueprint that would allow these companies to weather the storm.

El Al demanded $100 million in compensation from the government for strict travel policy violations. Three years of losses have been reported by the airline, and it has accumulated debt in order to replace its fleet.

As part of a plan to recover from the $210 million government-mandated aid package in 2013, it fired 1,900 workers.

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