Arkia Airlines Set for Sale as Investors Sign Deal Amid Financial Troubles

Israeli airline Arkia is set to undergo a major ownership change after the Nakash brothers announced Thursday that they had signed an agreement with a group of investors who will inject tens of millions of dollars into the struggling carrier in exchange for a controlling stake. The deal comes amid financial difficulties at the airline and a labor dispute declared the same day.

Negotiations on behalf of the Nakash brothers were led by Avi Hurmaro, CEO of the Nakash Group, who has been overseeing Arkia's financial recovery efforts. The investment group includes businesswoman Einav Adib-Barer, owner of medical centers; Kidan Dahari and Yaron Adib, owners of the income-producing real estate companies Yishpro and Tnuport; and Yariv Lerner, chairman and co-owner of the Negev Group.

"We are entering the company with a long-term commitment," the investors said in a statement. "Our investment is intended to stabilize the company, strengthen its operations, and ensure its continued activity for the benefit of its employees, passengers, and the Israeli economy."

Labor Dispute Declared Amid Financial Uncertainty

The announcement coincided with a labor dispute declared by the Histadrut labor federation's Transport Workers Union, which accused Arkia's owners of pursuing restructuring plans and workforce reductions without reaching agreements with employee representatives.

According to the Histadrut, the proposed measures include canceling flight routes and could adversely affect employment conditions and workers' rights. The union also raised concerns about the airline's financial stability, warning of a potential risk of insolvency. Employees claimed that a proposed sale, which could help stabilize the company, had not been progressing for reasons that remained unclear to them.

The developments come one week after Israir CEO Uri Sirkis confirmed to employees that his company was exploring the possibility of acquiring Arkia. He emphasized that the preliminary discussions were "not about a takeover, but about strengthening Israeli aviation."

Sirkis argued that combining the two airlines could significantly reduce operating costs and create a stronger Israeli competitor with a fleet of five wide-body and 15 narrow-body aircraft. Such a fleet, he suggested, would allow the combined airline to compete more effectively with major international carriers on pricing and service while strengthening Israel's position in the global aviation market.