Israel’s parliamentary finance committee approved a plan to provide a state guarantee of $6 billion to cover insurance against war risks to Israeli airlines, the Finance Ministry said on Thursday.
The guarantee framework will grant Israeli airlines insurance policies against war risks, thereby ensuring the continuity of air operations in Israel.
Due to the outbreak of war between Israel and the Palestinian militant group Hamas last weekend, the insurance companies insuring flag carrier El Al Airlines, Israir and Arkia have said that the terms of their policies indicated that in time of war, within seven days of notification, the insurers are entitled to cancel insurance policies.
