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# ISRAEL: Arkia Owners Seek Capital Injection as Employees Reject Dilution of Their Stake
- URL: https://insideaviation.news/israel-arkia-owners-seek-capital-injection-as-employees-reject-dilution-of-their-stake/
- Published: 2026-11-03T11:32:09.000Z
- Updated: 2026-11-03T11:32:09.000Z
- Description: BNEI BRAK, Israel – Arkia's owners, the Nakash brothers, will only inject capital into the loss-making airline if employees' stake of about 20% is diluted, setting off a labour dispute while the company remains unsold at an asking price of NIS 170 million Israeli shekels (USD 54.1 million).
- Author: Inside Aviation News
- Tags: Israel, Arkia, labour dispute, Shareholding/Equity Change, Finance, unions, Bnei Brak

BNEI BRAK, Israel

- Arkia Israeli Airlines' controlling shareholders, brothers Joe, Rafi and Avi Nakash, are seeking to inject capital into the airline but will only do so if employees' shareholding is diluted, according to Calcalist and PassportNews.
- Calcalist reported that employees hold 20% of Arkia's shares, down from 30% before earlier Nakash family capital injections diluted them; PassportNews put the current employee stake at 21.14%.
- PassportNews reported that the owners are demanding the employees' stake be diluted to zero and that a comprehensive recovery plan be implemented as conditions for the capital injection.
- Calcalist reported that Arkia lost more than USD 30 million in 2026, while PassportNews cited sources close to the Nakash brothers as saying the airline lost about USD 40 million in the first nine months of the year.
- Both outlets attributed the losses mainly to higher jet fuel prices; Calcalist cited tourism industry sources as also pointing to under-filled long-haul flights to destinations such as Bangkok and New York.
- Arkia told Calcalist it is a private company that does not publish financial results and would not comment on the figures, adding that in 2026 it faces a significant rise in fuel prices and challenges stemming from the security and economic situation, and is adjusting activity to market conditions and managing expenses.
- The Transport and Seaports Workers' Union sent a letter to management on 2 November 2026 announcing steps toward declaring a labour dispute, according to Calcalist.
- C14 reported that the letter was addressed to Avi Hormoro, the Nakash family representative, and Chief Executive Officer (CEO) Oz Berlovitz, and demanded a halt to the disputed measures, an end to the work of consultants it said were bypassing employee representatives, cancellation of the dilution of employee shares, and no efficiency plan without agreement from employee representatives.
- The union also claimed the owners are not injecting capital at the required scale, according to C14.
- Employees held a protest outside Arkia's offices in Bnei Brak on 3 November 2026, according to PassportNews; employee representatives expressed full confidence in Berlovitz and concern over layoffs and a sale of the company.
- PassportNews reported that employees reject the owners' plan and say an alternative option is to find an external buyer for the airline.
- Hormoro, the Nakash brothers' business manager in Israel, has returned to Arkia as a board observer, according to Calcalist and PassportNews.
- Calcalist reported that Hormoro left about a year ago on Avi Nakash's instructions after a dispute in which Avi Nakash sued him for NIS 65 million Israeli shekels (USD 20.7 million), and that he returned with Avi Nakash's consent; PassportNews reported he returned after three years, was appointed by all three brothers, and that a derivative claim Avi Nakash had filed against him was withdrawn.
- Arkia falls under Avi Nakash's responsibility in the division of assets among the three brothers, according to Calcalist.
- The Nakash brothers have put Arkia up for sale but have not found a buyer, asking NIS 170 million (USD 54.1 million) for the company, Calcalist reported.
- Calcalist reported that American businessman Elliott Zemel came close to a deal at NIS 140 million (USD 44.6 million) but talks did not mature, and that other candidates, including an ultra-Orthodox businessman from New York and a Russian oligarch, also held talks that did not result in a deal.
- Senior sources within Arkia told C14 that extensive use of wet-leased aircraft has led to repeated flight delays and losses, that ground handling service problems caused significant damage to the airline during the summer, and that there are "excessive expenses without control."

**Sources:**

- [Calcalist](https://www.calcalist.co.il/local%5Fnews/article/s1h6giipgl?ref=insideaviation.news)
- [PassportNews](https://passportnews.co.il/article/211724?ref=insideaviation.news)
- [C14](https://www.c14.co.il/article/1770194?ref=insideaviation.news)