Arkia CEO Addresses Ownership Talks Amid Financial Woes and Labor Dispute
Translated & summarized from Ice by baba
Arkia CEO Oz Berlowitz addressed travel agents regarding ongoing talks about the airline's ownership structure, following reports that Israir is considering an acquisition. The company is also grappling with a labor dispute and significant financial losses, with estimates suggesting a potential $50-60 million loss for 2026. Berlowitz assured partners that management remains focused on operations and development amidst these challenges.
The story in 5 lines · by baba
- Arkia CEO Oz Berlowitz confirmed talks about the airline's future ownership structure.
- Israir is reportedly considering acquiring Arkia, though no deal is certain.
- Arkia faces a severe labor dispute and significant financial losses, estimated at $30 million so far this year.
- Employees, who own 20% of the company, are protesting efficiency plans.
- The Nakash family, owning 80%, is reportedly exploring options to sell the airline.
Arkia CEO Oz Berlowitz sent a letter to travel agents on Thursday addressing ongoing discussions about the airline's future ownership structure. This comes a day after it was revealed that Israir, controlled by Rami Levy, is considering acquiring Arkia. The airline is also facing a severe labor dispute and reports of financial difficulties.
Berlowitz stated in his letter that the ownership talks are the responsibility of the shareholders and not part of the company's daily management. He emphasized that Arkia's management remains focused on operating flights, meeting commitments to customers and business partners, and continuing its development. Israir confirmed receiving an inquiry to examine the acquisition of Arkia but cautioned that the review might not lead to a deal.
According to reports, Arkia's controlling shareholders, the Nakash brothers, are exploring options to sell the company, with inquiries also made to El Al and international entities. These negotiations occur during a critical period for Arkia, which is estimated to have lost approximately $30 million in the first three quarters of the year and could end 2026 with a loss of $50 to $60 million. Arkia, a private company, has not released official financial statements and disputes these estimates.
Simultaneously, Arkia employees protested management's efficiency plans and alleged infringements on their rights. Employees hold 20% of Arkia's shares, while the Nakash family owns 80%, and disputes also exist regarding employee shareholdings. Berlowitz highlighted Arkia's expansion over the past three years, including new routes, fleet growth, and expanded operations to the Far East. He acknowledged significant challenges for 2026 due to rising fuel prices and the changing geopolitical landscape, assuring that the company is adapting responsibly.
Berlowitz concluded by stressing the importance of cooperation with travel agents, thanking them for their trust, and inviting direct communication for questions and suggestions, expressing appreciation for their long-standing partnership.
