The mandatory furlough was also extended to the end of August.

El Al Israel Airlines on Thursday extended its suspension of flights to the end of August and said it reached cost-cutting agreements with the country’s main labor union that will facilitate a government bailout.The Israeli flag carrier, which sent nearly all of its 6,500 employees on unpaid leave since the coronavirus outbreak, has said it will go bankrupt without state assistance.

The government has offered to guarantee bank loans and even buy a majority stake, but it is demanding an overhaul, including some $400 million in cutbacks. The airline’s workforce is expected to be reduced by about 2,000 employees.El Al said it signed an agreement with the umbrella Histadrut labour federation regarding the airline’s 650 pilots, who have been the last holdouts. Flight attendants, mechanics and administrative staff have already signed on.Histadrut said the pilot agreement alone would bring $105 million in spending cuts. The pilot’s association, however, did not support the deal, saying it was a maneuver to secure government assistance and that a final arrangement needs to be reached. Read more at JPost