By Steven Scheer

JERUSALEM (Reuters), – Israel’s government stated on Thursday that additional support would be given to El Al Airlines as a compensation for the reimposition COVID-19 restrictions on Israelis travelling overseas and a ban on foreign tourist entry.

A Finance Ministry statement stated that Israel’s flag carrier, Israel Air, will receive millions from El Al and its controlling shareholders in order to assist it with the Omicron pandemic.

According to the ministry, this aid will be distributed over the coming months and Israel’s main airlines Arkia or Israir will also receive similar deals.

El Al is pressing the government to provide another aid package. Israelis are now prohibited from traveling to many countries including Britain and the United States, while an exclusion order on foreigners has returned.

Avigdor Loverman, Minister of Finance, said that “the new outline will permit (airlines), to overcome the pandemic but will also maintain the principle that state assistance will be provided together with external capital to strengthen the capital structure.”

“I am hopeful that we’ll open our skies in the next month to all who enter and leave.”

At the outbreak of the pandemic, Israel closed its borders to foreigners in March 2020. Although foreigners had been allowed to enter briefly for a time in November 2021 due to rapid spreading of Omicron, Israel’s government tightened its travel restrictions.

El Al laid off nearly one third of its employees as part of the recovery plan required by the government in order to get a $210million aid package. The fleet was also reduced to 29 vehicles from 45.

A $30 million additional aid was planned for the airline due to summer restrictions.

El Al’s third quarter net loss was $136.2 Million, which is an average period for its strength, as opposed to a 146.6 million loss the previous year. From $39.2 million last year, El Al’s revenue shot up to $253 million. This was because borders were not open.

It had initially believed sales for the fourth quarter would be higher in the wake of the government’s approval for tourists vaccinated within the prior six months to enter Israel as of November 1.