Airlines Given More Time to Pay Refunds on Cancellations

Israeli airlines have won a concession from the government on cancelled flights in the coronavirus crisis, extending the time for paying refunds from 21 to 90 days, Globes reported on Thursday.

The measure, an amendment to the Aviation Law, also relieves the carriers of the burden of paying compensation for cancellations, usually between 1,300 and 1,500 shekels.

The amended law will take effect until the end of May, but the government has the option to extend it by a month for up to nine months. It is retroactive to March 1, 2020.

Meanwhile, El Al reportedly sold three planes to an American company and will in the future lease the aircraft from it. The deal was valued at $76 million.

El Al said it was part of a streamlining program tied to obtaining a loan from the government to keep it going during the pandemic while 95 percent of its passenger routes have been suspended.