Israir Considers Acquiring Arkia, Creating New Aviation Giant

Israir CEO Uri Sircus confirmed that the airline is examining the acquisition of Arkia, a move he believes could reshape Israel's aviation landscape. In a letter to employees, Sircus stated that if the deal is approved, the combined entity would form an aviation group capable of competing on price and service with major global airlines.

Sircus emphasized that the acquisition is in its initial evaluation phase and stressed that it is not a hostile takeover but rather a strategic step to strengthen Israeli aviation and secure the future of both companies. He projected that the merged company would operate a fleet of five wide-body and 15 narrow-body aircraft, aiming to transport 3.5 million passengers by 2030. The plan includes leveraging self-operation for long-haul routes to differentiate services and reduce costs.

In parallel, the workers' committee of the Airports Authority is reportedly considering its own bid to purchase Arkia's shares. This group plans to establish a management company and appoint a CEO, with the primary goal of enhancing employee pension funds, which currently stand at four billion shekels. They intend to present their proposal to Arkia's owners before holding an employee assembly for approval.

Sircus acknowledged Arkia as a worthy competitor that has made significant business strides in recent years, but highlighted Israir's advantage in infrastructure and technology investment. He assured employees that any potential merger would be conducted responsibly and transparently, with full respect for the staff of both airlines, and pledged to provide ongoing updates.

In related news, Sircus mentioned that Israir has reduced its wet-leased aircraft by six to mitigate risks amid recent security tensions, while simultaneously being prepared to increase capacity for flights to the United States.