Israeli fund scraps plan to invest in El Al

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Israeli investment company FIMI has cancelled plans to inject substantial capital into El Al, the country's flag-carrier airline.

El Al has disclosed the cancellation in a statement to the Tel Aviv stock exchange.

FIMI had intended to invest up to $75 million in the airline but the deal was conditional on new collective agreements with the carrier's workforce.

A deadline to achieve the conditions for the investment had already been extended to give the airline additional time to negotiate.

Under the proposal, originally signed in April, El Al would have received $50 million in initial funding, in exchange for FIMI's taking shares in the carrier, with options on further investment tranches totalling $25 million.