The Smart Marty Sky Dispatch
Israir in talks to buy Arkia in effort to compete against international rivals
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."
Israir is in preliminary talks to buy its main local rival Arkia as part of a bid to better compete with international carriers, according to a letter from Israir’s chief executive to staff.
The companies are the second- and third-largest Israeli airlines behind El Al, with Israir valued at about $144 million. Arkia, privately held, has not published its results publicly, but local media describe the airline as having fallen into a crisis with ongoing efforts to find a solution.
In the communication seen by Reuters, Israir’s Uri Sirkis said Arkia remains a valued competitor, while Israir has invested in infrastructure, technology, and future development, including aircraft acquisitions, hotel partnerships, and a stake in a credit card firm. He suggested these investments could give Israir a significant competitive advantage.
Sirkis outlined Israir’s growth plans, including carrying 3.5 million passengers by 2030 and operating a fleet of about 20 aircraft. He framed the potential combination as strengthening Israeli aviation and enabling cost savings and improved competition against major international airlines operating in Israel.