The commitment was made after efforts made by Economy Minister Amir Peretz, Justice Minister Avi Nissenkorn and Transportation Minister Miri Regev.
Any airline that can't prove a loss of at least 70% in earnings will need to reimburse customers immediately. El Al will need to reimburse customers over NIS one billion. If investment is found for the firms, the money will need to be reimbursed immediately.
El Al's Board of Directors ruled in July in favor of the plan the Finance Ministry suggested in order to keep the airline in business during the global coronavirus crisis, and the ongoing pilots strike that halted all operations, Calcalist reported.
The state will guarantee a $250 million loan and will purchase $150 million worth of stocks in the company, meaning it would control 61% of El Al. The process of releasing these new stocks for the state to buy them is expected to be completed by early October.
The goal is that, when the company is stable, an outside investor would purchase it. An unnamed Israeli citizen had already made inquires into the matter, Haaretz reported last week.