Israir airline in talks to purchase rival Arkia in bid to compete against foreign carriers - report
Local media have reported that privately owned Arkia has recently suffered a loss, and though its results have not been published its owners said the airline had fallen into a "crisis."
Israeli airline Israir is reportedly in discussions to acquire its main local competitor, Arkia, with the aim of improving its competitiveness against foreign carriers, according to the company's CEO Uri Sirkis. Sirkis revealed this in a letter to staff, emphasizing that Israir's larger investments in infrastructure, technology, and future development, such as the purchase of eight aircraft and forming partnerships with hotels, give it a significant advantage over Arkia.
The CEO further stated that Israir's goal is to carry 3.5 million passengers by 2030, with a fleet of around 20 aircraft. If the acquisition is approved, Israir aims to create a formidable aviation group that could compete with major international airlines operating in Israel, generating substantial annual savings and establishing a strong challenger under the Israeli flag.
Both Israir and Arkia primarily operate on domestic routes and to Europe, but recently, they have expanded to longer-haul flights to destinations such as New York, Thailand, Vietnam, and plan to start flights to the Philippines. Arkia, which has a nearly 11% market share of passengers using Ben-Gurion Airport near Tel Aviv in 2026, has recently reported a $30 million loss over the first three quarters of 2026.
However, Arkia maintains that it is a private company and does not publish its financial results, making the data unofficial. The Nakash brothers, owners of Arkia, stated in a statement that they are working to find solutions to the crisis the company has fallen into, with the aim of rehabilitating and recovering the company in an uncompromising, professional, and long-term approach, prioritizing the well-being of passengers and employees.
Written by urgent.news from Jerusalem Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
