Saturday, April 10, 2021

$210 million government aid to Israeli airlines

The government plans to pre-purchase agreements with airlines to increase revenue.

Must Read

UK mourns as Prince Philip dies in sleep at 99

Prince Philip, the husband of Queen Elizabeth II, has died at the age of 99, Buckingham Palace said on Friday. The announcement was made on Twitter.

Slovakia to send back Sputnik V COVID-19 vaccine due to contract violations

Slovakia was told to send back its Sputnik V coronavirus vaccines "due to multiple contract violations".

Biden to resume aid to UN Palestinian refugee agency cut by Trump

The Biden government has announced plans to resume the money for the United Nations agency that supports Palestinian refugees.
Noah Fisher
Noah Fisher
After serving as a lead author in leading magazines, Noah Fisher planned to launch its own venture as DailyResearchEditor. With a decade-long work experience in the media and passion in technology and gadgets, he founded this website. Fisher now enjoys writing on research-based topics. When he’s not hunched over the keyboard, Fisher spends his time engulfed in critical matters of the society. Email:info@dailyresearcheditor.com
- Advertisement -

Tel-Aviv: Israeli airlines will receive a lifeline from the government to deal with the coronavirus crisis. The government plans to pre-purchase agreements with airlines to increase revenue. El Al is the first to receive this lifeline and saw the government buy $ 210 million advance tickets.

According to Reuters, Israel has announced a new rescue package for the country’s struggling airlines. The package was long-awaited, as the country did not provide direct financial assistance during the crisis, but only offered loans by the government. This time, the government is offering lifebuoys, but with a catch.

Pre-purchasing tickets will save airlines for Israeli aviation security personnel who have to travel to different airports. This means that the government will buy hundreds of thousands of tickets in advance, increasing the airline’s air reserves and using the tickets over the next two decades for security personnel who have to travel.

- Advertisement -

El Al is the first recipient of this scheme, which replaces the proposed $ 300 million loan from the state. The government bought $ 210 million worth of seats from El Al and Sun Dor subsidiary to be used by security officials for more than 20 years. Other airlines that have security personnel will receive similar offers in the coming weeks.

This is not a new idea, with Hong Kong buying 500,000 tickets from the city’s airlines last year to promote airlines and later offering the tickets through a lucky draw. These tickets cost the government $ 260 million and were at a critical time for flag bearer Cathay Pacific and others.

The Emirati, Israeli and US flags are picture attached to an air-plane of Israel’s El Al, adorned with the word “peace” in Arabic, English and Hebrew, upon it’s arrival at the Abu Dhabi airport in the first-ever commercial flight from Israel to the UAE, on August 31, 2020. – A US-Israeli delegation including White House advisor Jared Kushner took off on a historic first direct commercial flight from Tel Aviv to Abu Dhabi to mark the normalisation of ties between the Jewish state and the UAE. (Photo by KARIM SAHIB / AFP) (Photo by KARIM SAHIB/AFP via Getty Images)

- Advertisement -

While many major aviation markets provided direct incentives through rescue plans, Israel did not. Instead, the government has taken a more fiscally conservative approach to ensure it recovers its funding. This meant that the flag bearer got El Al and other loans with a government guarantee but provided cash but contributed the debt heap.

However, ticket purchases are a tasty middle-ground for airlines, which now offer benefits. While carriers may lose future revenue from blocked seats for the government, the need for survival outweighs it. Since the border with Israel has been largely closed for a year, the rescue operation will be critical for airlines.

The rescue plan is crucial for airlines, but it is on the verge of recovery. Israel has rushed forward to vaccinate its population and provide both doses to nearly 50% of the population. Once a critical mass of the population has been reached, the country will once again be fully open to tourism, first domestically and later internationally.

Countries around the world will look to Israel as the first example of a country that is normal. If business were to fall soon, the government could even reopen its border and allow vaccinated tourists to return. For now, airlines are hoping the rescue company is enough to ensure they work through aviation recovery.

- Advertisement -
- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Latest News

UK mourns as Prince Philip dies in sleep at 99

Prince Philip, the husband of Queen Elizabeth II, has died at the age of 99, Buckingham Palace said on Friday. The announcement was made on Twitter.

Slovakia to send back Sputnik V COVID-19 vaccine due to contract violations

Slovakia was told to send back its Sputnik V coronavirus vaccines "due to multiple contract violations".

Biden to resume aid to UN Palestinian refugee agency cut by Trump

The Biden government has announced plans to resume the money for the United Nations agency that supports Palestinian refugees.

Ukraine intends to fasten up joining NATO to send ‘real signal to Russia’

Ukraine's president needs to speed up the country's path to NATO membership to send a "real signal to Russia". Volodymyr Zelenskyy made the call after...

Senior Jordanian leader accuses crown prince for “malicious plot”

A senior Jordanian leader on Sunday accused the country's then crown prince of cooperating with foreign elements in a "malicious plot".
- Advertisement -

More Articles Like This

- Advertisement -