Photo: Styyx / Wikimedia Commons
Israir is taking steps toward buying control of rival airline Arkia from the Nakash family, Globes reported Wednesday, as Arkia faces reported losses, debt pressure and a dispute with employee shareholders. No completed takeover, purchase price or closing date has been announced.
For travelers, airline workers and owners, the question is simple: putting two competitors under one owner could change the choice of flights and the future of jobs, but no fare increase, route cut or layoff has been established.
The proposal would bring together the second- and third-largest carriers at Ben Gurion Airport by the passenger figures cited by Globes. Any agreement would still face competition scrutiny, alongside the immediate question of whether a deal can be reached.
A possible deal, not a signed takeover
Israir, controlled by businessman Rami Levy and led by Uri Sirkis, is examining a business with routes to Europe, North America and the Far East. Its own investor website describes a group combining flights with hotels and holiday packages, and an expansion beyond its traditional European and Mediterranean network.
In a statement carried by Israel Hayom, Israir acknowledged an approach concerning a possible purchase of Arkia. It said there was no certainty that a review would lead to a transaction and that any decision would be reported as required by law. That is well short of a binding purchase agreement.
Globes also reported that El Al was examining a possible acquisition. The newspaper assessed El Al’s chances of regulatory approval as low because of its much larger position in the Israeli market. That assessment applies to El Al; it does not establish that regulators have decided on Israir’s potential bid.
Debt pressure meets a shareholder dispute
Globes estimated that Arkia lost about $30 million in the first nine months of 2026 and could finish the year with a $50 million to $60 million loss. Those are reported estimates, not company-published financial results.
Arkia expressly cautioned that it is a private company that does not publish financial data and that outside estimates should not be treated as its official figures. It said a sale or merger was a matter for shareholders, while management continued to focus on customers and day-to-day operations.
The Hebrew Globes report puts the Nakash family’s holding at 80% and the employees’ stake at 20%, down from an earlier 30% after dilution. Workers demonstrated outside the airline’s headquarters Tuesday. Globes reported that no strike had yet been declared. A possible labor disruption should not be confused with a flight cancellation already in effect.
Why routes and competition matter
Beyond the aircraft, an acquisition could give Israir access to Arkia’s workforce and operating network. Globes points to scarce airport capacity and potential operating savings as part of the attraction.
But a stronger combined carrier would also mean one fewer independent competitor. That creates a difficult regulatory balance between preserving competition and the financial pressures facing Arkia. There is no announced Competition Authority approval for an Israir-Arkia transaction.
For now, passengers have an acquisition proposal to watch, not a confirmed change to their bookings. Employees and shareholders face a separate question: what any eventual agreement would mean for jobs, ownership and the money needed to keep the airline operating.
JBizNews Desk | New York
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