ISRAEL: Israir Approached Over Arkia Acquisition Amid Losses and Employee Dispute

TEL AVIV, Israel

• Israir Group, controlled by Rami Levy and managed by Chief Executive Officer (CEO) Uri Sirkis, has confirmed it was approached regarding a possible acquisition of Arkia Israeli Airlines, according to a filing with the Tel Aviv Stock Exchange (TASE) on 4 November 2026.
• In the filing, Israir said it has not yet examined the approach and that, should it do so, there is no certainty the examination will result in a deal. It said it will report any decision as required by law.
• Representatives of Arkia's controlling shareholders, the Nakash brothers, approached both Israir and El Al Israel Airlines in recent days with an offer to buy the airline, TheMarker reported. The Nakash family is seeking a buyer in Israel and abroad. El Al declined to comment.
• Arkia is estimated to have lost about USD 30 million in the first three quarters of 2026 and is projected to finish the year with a loss of USD 50–60 million.
• An official statement from Arkia reads: “Following the various publications about the sale of the company, the issue of the sale of the company or its merger is in the hands of the shareholders and is not part of the company’s management, which continues to focus on managing current operations, its customers, and the continued development of the company.”
• Regarding the publication of the loss of approximately USD 40 million, Arkia stated: “Arkia is a private company that does not publish its financial data, and therefore publications and estimates regarding its financial results should not be considered as official data on behalf of the company.”
• Year-to-date, Arkia is the third-largest airline at Ben Gurion Airport (TLV) with 1.44 million passengers (about 10% of total traffic). Israir ranks second with 1.56 million passengers and an 11.7% share.
• A successful deal would give Israir Arkia’s scarce slots at Ben Gurion, its workforce and operational synergies, while removing a major competitor. El Al has also examined a purchase, but regulatory approval is viewed as unlikely.
• Arkia’s employees hold about 20–22% of the shares (down from 30% after earlier dilutions) and are in dispute with the Nakash brothers over a proposed capital injection that would further dilute or eliminate the employee stake. Workers held a protest outside Arkia’s Bnei Brak offices. No strike has yet been declared.
• The Competition Authority faces a trade-off: it does not want a major competitor to exit the market, but it also does not want Arkia to collapse and defer debt repayments.
• Previous attempts to consolidate the Israeli leisure market have failed on competition grounds. In 2018 the Israel Competition Authority blocked a proposed merger between El Al and Israir, citing the risk of cementing a duopoly with Arkia on domestic Eilat routes. Preliminary merger talks between Arkia and Israir in late 2023 and between El Al and Arkia in 2022 also failed to advance.
• Three carriers now fly the Tel Aviv–Eilat (Ramon) route: Israir, Arkia, and airHaifa. The planned entry of TUS IL, a new Israeli short-haul carrier, could further ease competition concerns by expanding the field of Israeli operators.

Sources:

• Globes
• PassportNews
• TheMarker
• Tel Aviv Stock Exchange (TASE) filing