Israir Considers Acquiring Arkia, Forming Major Israeli Airline Group
Translated & summarized from N12 by baba
Israir CEO Uri Sirkis confirmed his company is exploring the acquisition of Arkia, aiming to create a stronger Israeli aviation group. The potential merger, still in early review, could lead to significant cost savings and a competitive international presence. Meanwhile, the Israel Airports Authority workers' committee is also considering a bid for Arkia shares, focused on pension fund growth. Sirkis assured transparency and respect for employees throughout the process.
The story in 5 lines · by baba
- Israir CEO Uri Sirkis confirmed the airline is examining the acquisition of Arkia.
- The potential merger aims to create a competitive Israeli aviation group challenging global carriers.
- The Israel Airports Authority workers' committee is also considering a bid for Arkia shares.
- The acquisition is in its initial review stages, with no certainty of completion.
- Israir has adjusted its fleet size due to recent security tensions.
Israir CEO Uri Sirkis confirmed that the airline is examining the potential acquisition of Arkia, another Israeli carrier. In a letter to employees, Sirkis stated that such a merger could reshape Israel's aviation landscape, though he emphasized the process is in its initial stages.
If the acquisition proceeds, Sirkis explained, the combined entity would leverage the strengths of both companies, potentially leading to significant operational cost savings. The goal is to create a competitive aviation group capable of challenging major global airlines on price and service, operating a fleet of five wide-body and fifteen narrow-body aircraft under an Israeli flag. Sirkis stressed that the move aims to strengthen Israeli aviation and secure the future of both airlines, rather than being a hostile takeover.
He outlined a strategic plan for the merged company to transport 3.5 million passengers by 2030, with a fleet including wide-body jets, narrow-body planes, and private aircraft. Long-haul routes would be operated in-house to differentiate services and reduce costs.
In parallel, the workers' committee of the Israel Airports Authority is reportedly considering its own bid to purchase Arkia's shares. Their plan involves establishing a management company and appointing a CEO, with the primary objective of enhancing employee pension funds, which reportedly total four billion shekels. The workers do not intend to manage the airline directly.
Sirkis assured employees that any potential merger would be conducted responsibly and transparently, with full respect for the staff of both companies. He also noted that Israir has reduced its wet-leased aircraft by six due to recent security tensions but is prepared to immediately increase capacity for flights to the United States.
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