Israir Group (TASE: ISRG), controlled by Rami Levy and managed by Uri Sirkis, is making moves to acquire its competitor Arkia, "Globes" has learned.
As far as is known, the impetus for the deal is the severe difficulties currently plaguing Arkia. In the first three quarters of the year, Arkia reportedly incurred losses of approximately $30 million, and it is projected to end the year with a total loss of $50 to $60 million.
According to the company’s website, Arkia’s fleet consists of three aircraft that it owns and seven others under "wet lease" (aircraft leased together with their crews from other airlines). Arkia operates flights to New York, Bangkok, Phuket, Hanoi, London, Paris, Zanzibar, Tbilisi, Batumi, Rome, Barcelona, Amsterdam, Budapest, Dubai, Tirana, Minsk, Sofia, Lisbon, Baku, Prague, Athens, Thessaloniki, Larnaca, Crete, Mykonos, and Paphos.
What’s the benefit for Israir?
If Israir succeeds in acquiring Arkia, it will gain access to its "slots", the air routes Arkia operates to the Far East, Europe, and the US. This is particularly significant given the current shortage of slots at Ben Gurion Airport, a situation highlighted during the conflict with Iran, when US refueling aircraft occupied parking positions at the airport, displacing passenger flights to and from Israel.
Israir will also gain Arkia’s workforce, and will benefit from operational synergies between the two companies. Furthermore, it will remove its primary competitor from the market.
For the year-to-date, Arkia ranks as the third-largest airline at Ben Gurion Airport, handling 1.44 million passengers (approximately 10% of the airport's total passenger traffic).
Israir holds the second position, with 1.56 million passengers and an 11.7% market share.
The question, of course, is whether the deal will be approved by the Competition Authority. On the one hand, the Authority does not want to see a major competitor exit the market; on the other, it does not want to witness the collapse of Arkia, which is currently on a path toward deferring debt repayments.
Arkia is embroiled in a dispute between the employees, who hold a 20% stake in the company (down from an original 30% following dilution), and the company’s owners, the Nakash family, which holds 89% of the shares. This conflict stems from the significant losses Arkia has been incurring.
While no strike has yet been declared, if one takes place, it could disrupt the travel plans of thousands of passengers later this year. Yesterday, employees held a demonstration outside the company’s headquarters.
Published by Globes, Israel business news - en.globes.co.il - on November 4, 2026.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.