The lawsuit claims that EL AL has violated its own terms of service policy
Israel's flagship airline EL AL was slapped with a massive $400 million class-action lawsuit on Tuesday over complaints that the company has refused to reimburse customers for canceled flights due to the coronavirus epidemic.
The lawsuit, submitted to the Lod Central District Court, claims that the total amount of tickets not reimbursed to passengers by the airline since March totals an estimated $440 million.
The complaint also accuses El Al management, which asked the customers to be patient as it continues to work with the government to restructure the company, has violated its own terms of service policy.
Earlier this month, EL AL announced it had reached a bailout agreement with the government that could see the airline partly nationalized as the company struggles to stay in business during the COVID-19 health crisis.
Under the deal, the airline will receive $250 million in loans, most of which will be guaranteed by the government, The Associated Press reported. El Al is also expected to raise an additional $150 million by selling shares of the company, in the case they are not sold, they will be bought by the state.
The dollar amount of the class-action complaint is equal to the amount requested by El Al in loans and government assistance to get out of the crisis. Read more at i24