El Al Airlines suffered another blow to its prospects for survival on Tuesday as the Israel Airports Authority (IAA) suspended the carrier’s cargo flights due to failure to pay its debts, The Jerusalem Post reported.
El Al, facing financial collapse with almost all its passenger flights grounded in the pandemic, had expanded its cargo operations to make up some of the lost revenue.
The airline owes some 60 million shekels ($17.3 million.), a source told Reuters.
Negotiations with the Israeli Finance Ministry for state guarantees on an estimated $400 million loan package have stalled over demands that El Al commit to an economizing program that would include many layoffs.
An emergency meeting was scheduled for Tuesday evening between airline executives and the new Transportation Minister Miri Regev to see what could be done to salvage the situation, Channel 12 reported.