The Smart Marty Sky Dispatch
Arkia offered for sale to Israir as airline faces mounting losses and internal tensions
Israir confirms receiving a takeover proposal from Arkia's owners, but says talks are preliminary; Nakash family exploring options to rescue airline as tensions emerge with management and employees over potential $30 million-$40 million annual loss
Arkia’s owners have approached Israir with a proposal to sell the airline, amid mounting losses and internal tensions that complicate attracting fresh investment. Israir confirmed a preliminary meeting occurred, but stressed that no due diligence has taken place at this stage.
The talks come as Arkia faces an estimated annual loss of $30 million to $40 million, according to sources close to the company. The Nakash family, Arkia’s controlling shareholders, are seeking options while tensions with CEO Oz Berlovitz have raised questions about leadership and strategy.
The Nakash family appointed Avi Hormaro to oversee the situation on their behalf, and Hormaro has also approached other potential buyers, including El Al. Israir’s leadership said the meeting was preliminary and that they will examine the proposal.
Employee ownership and finances add complexity to any sale: employees hold about 20% of Arkia’s shares and have resisted dilution that would fund a restructuring. The discussions come after a period of expansion and new routes, with Arkia reporting profitability in 2024 and 2025, but losses accumulated in the current year.