Airport Workers Eye Stake in Arkia Airline Amid Sale Talks
Translated & summarized from Walla by baba
Workers from the Israel Airports Authority are exploring the possibility of acquiring a stake in the airline Arkia, which is on the market. They are in preliminary talks with rival airline Israir, controlled by Rami Levy, about a potential joint purchase. Arkia is valued at approximately NIS 140-180 million. Israir's CEO, Uri Sirkis, sees potential in a combined entity, aiming to create a stronger Israeli aviation group.
The story in 5 lines · by baba
- Airport Authority workers are considering buying a stake in the airline Arkia.
- They are in preliminary talks with rival airline Israir about a joint bid.
- Arkia's estimated value is between NIS 140 million and NIS 180 million.
- Pinchas Idan, workers' chairman, believes workers can manage the company effectively.
- Israir CEO Uri Sirkis sees potential for a combined aviation group.
Workers at the Israel Airports Authority are considering acquiring a stake in the airline Arkia, which is currently up for sale. The workers' committee has already begun preliminary discussions with Israir, a competing airline controlled by businessman Rami Levy, regarding a potential joint bid.
Pinchas Idan, chairman of the Airports Authority Workers' Committee, expressed optimism about the initiative, stating that acquiring 15-20% of Arkia's shares would be beneficial, particularly for those under a budgetary pension. He suggested that if the workers become stakeholders, they might avoid future labor disputes. The valuation of Arkia is estimated between NIS 140-180 million. Idan believes the workers' committees should take a more active role in managing funds, asserting they can manage the company effectively.
While the initiative is in its early stages and no formal negotiations have begun with Arkia's owners, the Nakash family, Idan indicated that the workers would seriously consider purchasing shares if the owners are genuinely looking to sell. The Airports Authority employs approximately 4,500 people, with about half being permanent employees with high salaries.
Uri Sirkis, CEO of Israir, addressed employees regarding the potential acquisition of Arkia. He acknowledged Arkia as a respectable competitor that has made significant business strides. Sirkis highlighted Israir's substantial investments in infrastructure and technology, which he believes give them a competitive advantage. Israir has acquired eight aircraft, including two wide-body planes, a maintenance center in Cyprus, and seven hotels, and has a strategic agreement with Issta.
Sirkis outlined Israir's strategic plan to transport 3.5 million passengers by 2030, operate 15 wide-body and narrow-body aircraft, and at least four private jets. He envisions a combined entity that would leverage the strengths of both Arkia and Israir, creating a formidable aviation group capable of competing globally. He emphasized that this potential merger is not a takeover but a move to strengthen Israeli aviation and secure the future of both companies. Sirkis stressed that the examination is preliminary and there is no certainty of a deal, assuring that any future steps would be handled responsibly and transparently, with full respect for the employees of both airlines.
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