While the airlines in Europe have already taken austerity measures in connection with the coronavirus epidemic, the Israeli national company plans to part with 16% of its total workforce.
Asked about the impact of coronavirus on business activitiesEl Al, A spokesperson for the group confirmed that the company plans to fire 1,000 of its 6,000 employees, without giving further details.
Losses of 45 to 63 million euros estimated over 3 months
The company estimated last week that its losses would range between 50 and 70 million dollars (45 and 63 million euros) for the first quarter of 2020, in a report made to the Tel Aviv Stock Exchange. The forecast was released before the decision to suspend flights from El Al to Italy, the first outbreak of the new coronavirus epidemic in Europe, according to the Israeli business daily Globes.
Israel has banned flights to or from the countries most affected by the contamination, most located in Asia, and denies entry to its territory for non-Israeli travelers who have stayed in these countries.
Like other airlines, El Al “risks collapse,” said Arnon Ben-David, head of Histadrut, the main Israeli trade union center. “We are in an emergency situation (…) and that does not interest anyone,” he said during a demonstration by El Al employees at Ben-Gurion airport in Tel Aviv. , according to a press release.
“I appeal to the Israeli government and its leader (Benjamin Netanyahu, editor’s note) (…) temporary and emergency financial aid must be brought to the company for it to survive,” he pleaded. The central union and the staff committee are conducting “marathon negotiations” with the management of the company, he added.
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