Airport Authority Workers' Union Considers Buying Arkia Airline
Translated & summarized from Davar by baba
The Airport Authority Workers' Union is exploring the purchase of Arkia airline for an estimated NIS 45-50 million to enhance employee pension funds. The union plans to meet with Arkia's owners and will require a member vote if the deal progresses. Arkia employees protested this week against their owners' plan to dilute their shares, a move the union stated would not affect them.
The story in 5 lines · by baba
- Airport Authority Workers' Union is considering buying Arkia airline.
- The purchase aims to improve pension funds for Authority employees.
- The estimated cost for the acquisition is NIS 45-50 million.
- Arkia employees protested their owners' plan to dilute their shares.
- The union stated it would not harm Arkia employees' shareholdings.
The Airport Authority Workers' Union announced Friday it is considering acquiring the airline Arkia. A feasibility study is currently underway to inform a final decision, and union representatives are expected to meet with the company's owners soon. If the purchase proceeds, it will require a vote by all union members. The primary goal of the potential acquisition is to improve the pension funds of Airport Authority employees.
The estimated cost of the purchase is between NIS 45-50 million. The dedicated pension fund for Authority employees currently holds approximately NIS 4 billion. Meanwhile, Arkia employees, who collectively own 22.5% of the airline's shares, protested this week in Tel Aviv. Their demonstration was against the controlling owners, the Nakash brothers, who intend to dilute their holdings to zero as a condition for injecting necessary funds into the company. The Airport Authority Workers' Union has clarified that they do not intend to harm Arkia employees' shareholdings and reiterated that no decision has been made regarding the purchase, which remains in the initial investigation stages.
