Michal Raz-Chaimovich In the footsteps of El Al Airlines, Israir, and Issta Lines, Arkia Airlines Ltd. has told its employees, "In view of the coronavirus crisis, Arkia is preparing for deeper cutbacks and streamlining at the company." Arkia chairman Avi Homero wrote, "The coronavirus crisis, which directly affects airlines' business, will force Arkia to introduce measures and deepen its cutbacks and streamlining in order to enable the company to recover."
Arkia has experienced difficulties in recent months, following the closure of Sde Dov Airport in Tel Aviv and the drop in demand for flights to Eilat, and even more because of the intense competition in flight to destinations to Europe.
Arkia has already laid off 120 employees. The remaining 550 employees own 30% of the company. The company's workers and management are due to sign a recovery plan in the next few days. Homero stated, "Arkia has been implementing a recovery plan in recent months designed in cooperation with the employees, who are partners in the company. The effects of the recovery plan, which was made necessary by the closure of Sde Dov Airport and the change in the civil aviation market, will be felt soon. The coronavirus crisis, which is affecting the global civil aviation market in general, including Arkia, of course, will force us to take additional streamlining steps in order to safeguard the company's stability."
Arkia recently announced that Amir Erez would replace Nir Dagan as its CEO.
Published by Globes, Israel business news - en.globes.co.il - on February 24, 2020
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