Arcaffe café chain owner Yaron Yarkoni is among the businesspeople interested in acquiring Israeli financial troubled airline Arkia, "Globes" has learned. The chain is in an advanced stage of performing due diligence on Arkia. As far as is known, Arcaffe is pursuing this move independently, without a consortium of other buyers.
Yarkoni has been with the Arcaffe chain for nearly 15 years. In 2019, he increased his stake in the company to 90% by acquiring an additional 30% at a company valuation of NIS 80 million. The chain has 55 branches, operating primarily in residential neighborhoods on a self-service format, with about 20% of its outlets in shopping malls and retail centers. The chain has a clear brand identity and concept, and it brings with it a proven track record in its field. The question remains how these attributes will translate into a sector that is seemingly far removed from its current activity.
Israir and El Al also interested
As previously revealed by *Globes*, the first party to express interest in acquiring Arkia was its rival Israir Group (TASE: ISRG), controlled by Rami Levy. Meanwhile, El Al Israel Airlines Ltd. (TASE:ELAL, the dominant player in the Israeli aviation market, is also exploring the potential acquisition of this smaller competitor from the Nakash brothers.
Following these reports, Arkia CEO Oz Berlovich sent a letter to employees saying, "Alongside the discussions currently taking place between the controlling shareholders, partners, and potential investors, Arkia’s operations continue as usual. The controlling shareholders are currently seeking to sell their holdings in the company, but I must stress that Arkia is an attractive company with tremendous growth potential and proven capabilities."
Berlovich added, "We are operating in a complex reality. The geopolitical situation continues to impact the aviation industry, and the sharp rise in the price of jet fuel is driving up the costs of flight operations. Our responsibility as management is to make decisions that implement the necessary adjustments, in order to maintain regular operations and service continuity."
Heavy losses
There are varying estimates in the market regarding Arkia’s valuation. One such estimate places the company’s value at $40 million, taking into account its financial situation and outstanding debts.
In the first three quarters of the year, Arkia incurred a loss of about $30 million, and it is projected to end the year with a total loss of $50-60 million. The company has a fleet of 20 aircraft, including four wide-body planes and over the past year, it operated flights to 40 destinations.
About six months ago, the airline launched a route to Hanoi, Vietnam, followed by a new route to the Philippines in September. Arkia had also planned to begin flights to Tokyo, Japan, but was forced to cancel the route after failing to receive approval to operate it using a wet-leased aircraft.
No response to this report has been forthcoming from either Arkia or Yaron Yarkoni.
Published by Globes, Israel business news - en.globes.co.il - on November 10, 2026.
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