Israel's cabinet members have approved an additional bailout plan for airlines that will not exceed $44 million, the finance and transportation ministries said in a joint statement.
The funding would be supplied in the form of three-year bonds which do not accrue interest.
A publicly traded airline will have the option to convert a bond into shares allotted to the state at maturity. In that case, the state would not hold more than 24% of an airline's equity and would not have voting rights.
Transportation Minister Merav Michaeli said the plan balances the government's responsibilities with those of airlines' controlling shareholders.