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Ongoing Story· Today

Arkia Cancels Flights to Phuket Amid Ownership Battle

2 developments

CalcalistSecurity

Arkia Cancels Flights to Phuket Due to Security Directives

Translated & summarized from Calcalist by baba

BusinessCharged tone

Hebrew · 7 newsrooms covering

Arkia Airlines is canceling its direct flights to Phuket, Thailand, starting January 2027, due to new Israeli security directives prohibiting the use of leased aircraft for this route. This marks another blow to the airline's expansion efforts amid financial struggles and an ongoing ownership change. The company has faced several recent route cancellations and postponements due to security concerns and market conditions. The planned sale of control to a group of investors led by Yariv Lerner is underway, involving a $45 million capital injection.

The story in 5 lines · by baba

  • Arkia cancels flights to Phuket starting January 2027 due to Israeli security directives.
  • The directives prohibit Israeli airlines from using leased aircraft for flights to Phuket.
  • The airline has faced multiple recent cancellations and postponements of routes.
  • Arkia has lost over $30 million since early 2026 and faces liquidity issues.
  • Control of Arkia is being transferred to investors led by Yariv Lerner for $45 million.
Arkia Cancels Flights to Phuket Due to Security Directives
Editorial illustration generated by baba News, not a photograph of the event.

Arkia Airlines will cancel its direct flights to Phuket, Thailand, starting in January 2027, following new security directives from Israeli authorities. This decision represents another setback for the airline's expansion plans, as it grapples with operational difficulties, financial losses, and ownership disputes.

According to Arkia's announcement, Israeli airlines will be prohibited from operating flights to Phuket using leased aircraft starting in January. Since Arkia operates the route with a leased plane, it was compelled to remove the flights from its schedule. Passengers who purchased tickets will be notified personally about available alternatives. The airline emphasized that the security directive specifically applies only to Phuket.

The Phuket route, launched last July, operated as a weekly flight from Ben Gurion Airport on Tuesdays using an Airbus A330 equipped with a business class section. Its cancellation follows a series of changes to the company's routes in recent months. Arkia had previously been forced to freeze ticket sales to Marrakech due to security instructions, cancel its planned flights to Baku for the winter season due to low demand, and postpone the launch of its direct route to Tokyo because Japanese authorities did not approve its operation with a wet-leased aircraft. The plan to resume flights to Dubai was also shelved due to security restrictions.

These cancellations occur at a time when Arkia was attempting to expand its operations to long-haul destinations and increase its market share. However, this expansion has not translated into financial stability, with the company losing over $30 million since the beginning of 2026 and suffering from a capital deficit and liquidity pressures. Some of the industry's losses are also attributed to operating long-haul flights with low occupancy, including to destinations like Bangkok and New York.

Concurrently, the company is undergoing a significant ownership transition. Owners Rafi, Joe, and Avi Nakash have signed an agreement to transfer control to a group of investors led by Yariv Lerner, Kidan Dahari, Yaron Adib, and Einav Adib-Berrer. The deal includes a planned capital injection of approximately $45 million. The transaction still requires settlement with employees, who hold about 20% of the company's shares and fear their holdings will be diluted.

CalcalistOther · Tel Aviv

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