Businessman David Ben-Ishai announced yesterday that he was heading a consortium that plans to bid in the tender for Arkia Airlines. Ben-Yishai owns Andal Aviation Ltd., the Israel representative of Delta Air Lines (NYSE:DAL, DNT), Kenya Airways, and China Airlines (Taipei:2610).
Ben-Ishai owns property in the US. He has been active in the tourism and aviation sectors for 35 years, and owns a New York travel agency, Magic Tours, which provides ground services to tourist wholesalers from Israel and other countries.
Ben-Ishai said acquiring Arkia was a strategic move for him. If he wins the tender, he will carry passengers to destinations in Europe, where he will offer follow-on flights on the airlines he represents to destinations in the Far East, South America, and Africa. In addition, if he wins the tender, Magic Tours will market Arkia's domestic Israel flights and holiday packages to Eilat and the Galilee.
Ben-Ishai announced that his attorney had begun to examine Arkia's finances. When this is completed, he will make a final decision whether to participate in the tender.
Antitrust Authority director general Dror Strum ordered Knafaim-Arkia Holdings (TASE: KNFM) to sell its interests in Arkia, ISSTA Lines (TASE: ISTA), Aviation Links (TASE: AVIA), Maman Cargo Terminals and Handling (TASE: MMAN), and Arnon Paz 1985 Ltd.
Two other consortia have also announced plans to bid in the Arkia tender. Bid may be filed until the end of the month. No large company has yet announced any interest in acquiring Arkia or Knafaim's other holdings.
Published by Globes [online], Israel business news - www.globes.co.il - on January 18, 2005