Defense contractor Israel Aerospace Industries (IAI) and holding group IES Holdings are partnering to create a facility for airlines to park airplanes grounded during the coronavirus outbreak near Israel's second-largest airport.

There are now more than 12,600 planes in storage as airlines have cut back flights, according to date provider Cirium. That is up from 2,485 recorded at the beginning of the year.

State-owned IAI said on Wednesday it will handle maintenance services at the new facility, which will be able to handle 500 planes.

The Israel Airports Authority said earlier in the week it was in touch with several airlines about parking in Ramon Airport in Israel's southern desert.