Arkia Airline Secures New Investors Amid Financial Recovery
Translated & summarized from Kipa by baba
Arkia, Israel's third-largest airline, has signed a deal to bring in new investors who will inject tens of millions of dollars and take majority control as part of a recovery plan. The current owners, the Nakash brothers, will transfer control to a group including Einav Adib-Berrer, Kidan Dahari, Yaron Adib, and Yariv Lerner. This move aims to stabilize the airline following labor disputes and financial concerns.
The story in 5 lines · by baba
- Arkia airline has signed an agreement to bring in new investors as part of a recovery process.
- The Nakash brothers, owners since 2006, will transfer majority control of Arkia to the new group.
- The new investors will inject tens of millions of dollars into the Israeli airline.
- The deal aims to stabilize Arkia following labor disputes and financial concerns.
- The acquiring group includes business figures Einav Adib-Berrer, Kidan Dahari, Yaron Adib, and Yariv Lerner.
Arkia, Israel's third-largest airline, is set to undergo a significant ownership change as its current owners, the Nakash brothers (Rafi, Joe, and Avi), have signed an agreement to bring in a new investor group. The Nakash brothers have owned 75% of the airline since 2006 through their company Jordash Israel. The new investors will inject tens of millions of dollars into Arkia as part of a recovery process, acquire a majority stake, and assume control of the company.
The acquiring group includes businesswoman Einav Adib-Berrer, who owns medical centers like TLV Medical Center, and businessmen Kidan Dahari and Yaron Adib, owners of real estate companies Yashpro and Tanoport. Yariv Lerner, a businessman and chairman of the Negev Group (Negev Ceramics), is also part of the consortium.
The purchasing group expressed confidence in Arkia and the Israeli aviation sector, stating, "We believe in Arkia and the Israeli aviation field. Arkia is a veteran brand with a professional and dedicated staff, and we are entering the company with long-term commitment. Our investment is intended to stabilize the company, strengthen its operations, and ensure its continued activity for the benefit of its employees, passengers, and the Israeli economy."
This deal offers a measure of relief for Arkia's passengers, following a period of uncertainty. The airline had faced labor disputes, including a strike declared by the Histadrut labor union, stemming from alleged unilateral actions by the owners regarding efficiency measures, staff reductions, flight cancellations, and concerns about the company's financial health. The completion of the acquisition is seen as a crucial step towards resolving the crisis.
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