El Al has entered discussions with an Israeli bank for a loan which would be partly backed by a state guarantee, in an effort to prop up its financial position.

The Israeli flag-carrier had previously sought an assistance package from the ministry of finance but was turned down.

While El Al maintains that government help, in some form, is crucial to the airline’s ability to ride out the coronavirus situation, it is turning to other means of funding.

It has not identified the bank with which it has started loan negotiations.

“Obtaining the loan, and the state’s backing for such a loan, in the near term are essential to allow the company to cope with the material consequences of the [coronavirus] crisis,” the airline says.

It is holding related discussions with the Israeli treasury.

While the talks are “advanced”, the carrier stresses, no memorandum of understanding has been signed and there is “no certainty” that a binding loan agreement or guarantee will be provided.