Airports Authority Workers' Committee Considers Buying Arkia Airline

The chairman of the Airports Authority Workers' Committee, Pinchas Idan, announced on Friday that the committee is exploring the possibility of acquiring a controlling stake in the airline Arkia from its owners, the Nakash brothers. This potential acquisition comes amid a control dispute and financial difficulties at Arkia, and follows an announcement by the owners of Israir that they are considering purchasing the airline.

The workers' committee, led by Idan and known for its influence, plans to fund the purchase using employee pension funds, estimated to be worth approximately 4 billion shekels. The primary goal is to enhance the pension funds' value and generate returns for the employees. The committee confirmed the exploration of this option, stating they would only proceed to meet with the Nakash brothers if they are convinced the deal would benefit the pension fund.

Even if preliminary agreement is reached, the acquisition would require approval from a majority of the committee members at a convened assembly. The ongoing drama in the Israeli aviation sector, particularly Arkia's crisis and acquisition talks, has direct implications for Israeli travelers. If Arkia is acquired by Israir or El Al, a significant competitor would be removed from the market, potentially leading to increased ticket prices as fewer companies compete on the same routes.

The ensuing chaos resulted in mutual accusations, and the Authority's chairman, Yiftah Ron-Tal, sought to prevent the extension of Idan's term and facilitate his removal. Prime Minister Benjamin Netanyahu and Transportation Minister Miri Regev attributed the disruption to the Authority's management and the committee. Netanyahu had also supported Idan's removal from the Likud party membership, a decision Idan stated he would not contest after over 50 years with the party.