Naftali Bennett Faces Skepticism Over Cost of Living Promises as Arkia CEO Details Airline Challenges and Growth Plans
Naftali Bennett, former Israeli Minister of Economy, faces criticism over his promises to reduce the cost of living, with analysts pointing to his previous tenure from 2013 to 2015 as largely ineffective. Despite renaming the Ministry of Industry and Trade to the Ministry of Economy, his major achievements were limited. For example, Bennett claimed to have dismantled the Nesher cement monopoly, but the company still controls over 50% of the market with prices remaining high. He also touted raising the minimum wage, a credit largely attributed to the Histadrut labor union, and promised to establish 400 kindergartens within two years, of which only about 20 were built during his term.
In a separate interview, the CEO of Arkia Airlines, Israel's second-largest carrier operating 20 aircraft, responded to criticism about the company’s operations and outlined future plans. Arkia has transitioned from a local airline to an international carrier with routes to North America, East Asia, Europe, and Russia. Despite challenges such as a 40% rise in fuel prices, low early summer occupancy due to war fears, and limited parking and ground service staff shortages at Ben Gurion Airport, Arkia has adapted by offering discounts and maintaining competitive prices, helped by a weak dollar.
The CEO highlighted the difficulty of not flying on Shabbat, which costs airlines significant revenue given Israel’s approximately 70 annual holidays. He also noted government support through a 55 million shekel loan guarantee to help airlines recover from COVID-19 disruptions. Arkia plans to expand its network with new flights to Japan starting October, increased service to Georgia, and hopes to resume flights to Dubai soon. The airline is investing in larger wide-body aircraft to increase capacity and signed deals to acquire two more such planes. Additionally, Arkia will launch a loyalty program in October and upgrade its booking software for improved customer service.
The article underscores skepticism about Bennett’s economic promises while providing insight into Arkia’s strategic adjustments amid ongoing regional instability and market pressures.
