Israir Considers Acquiring Arkia in Potential Shake-Up of Israeli Aviation Industry

Amid the possibility of Israir acquiring rival airline Arkia, Israir CEO Uri Sirkis addressed company employees on Friday morning, outlining the potential benefits of a deal that he said could significantly transform Israel’s aviation industry. However, he emphasized that discussions remain at a preliminary stage and that there is no certainty the acquisition will proceed.

His remarks followed a report in Globes that the Nakash Group, which controls Arkia, had approached Israir with an offer to sell the airline. Israir confirmed that it would examine the proposal, while its owner, Rami Levy, stated in court: "We received a request. If we decide that we want to buy them, we will apply to the Competition Authority for approval."

In his message to employees, Sirkis explained that Israir’s investments over the years have placed the company in a strong position to consider the potential acquisition. He noted that Israir has invested in infrastructure, technology, and future development, establishing itself as a potential buyer.

The CEO also outlined Israir’s strategic goals for 2030, including transporting 3.5 million passengers and operating a fleet of five wide-body aircraft, ten narrow-body aircraft, and at least four private jets.

Addressing the possibility of combining the two airlines, Sirkis wrote: "If the move is approved, Arkia’s strengths, expertise, and ambitions will be added to ours, and we will establish an extraordinary aviation group capable of competing on price and service with the world’s major airlines operating in Israel."

According to Sirkis, combining the two established Israeli aviation brands under a shared, transparent, publicly traded corporate structure could reshape the industry. He stressed that the proposed transaction should not be viewed as a takeover, but rather as an initiative aimed at strengthening Israeli aviation and securing the future of both companies.

Despite the ambitious vision, Sirkis emphasized that any progress would be made responsibly and transparently, while respecting the employees of both Israir and Arkia. He reiterated that no decision has yet been made regarding the acquisition.