The Smart Marty Sky Dispatch
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."
Israir is in preliminary talks to buy its main local rival Arkia, according to a letter from Israir’s Chief Executive to staff. The move aims to strengthen Israir’s ability to compete with foreign carriers operating in Israel.
Israir, valued at about $144 million, is considering a combination with Arkia, a privately held airline that has faced financial difficulties according to local media reports. Arkia has not published its results, but its owners described the situation as a “crisis.”
Arkia continues to operate normally and says it is adjusting to a changing reality while maintaining operational stability and continuing to develop its activity. Israir’s leadership argues the proposed combination would leverage existing investments in infrastructure, technology, and future development.
Israir aims to carry 3.5 million passengers by 2030 and operate a fleet of around 20 aircraft, with the rationale that a merged group could compete on price and service against major international airlines serving Israel. The plan is described as a strengthening move for Israeli aviation rather than a takeover.
Market shares at Ben-Gurion Airport show Israir with about 12% and Arkia with nearly 11% of passengers so far in 2026. Both airlines have traditionally focused on domestic routes and Europe, recently expanding to longer-haul routes to New York and, for Arkia, Asia, with plans to the Philippines starting in January.