Nakash Brothers Sell Control of Arkia Airlines Amid Financial Woes

The Nakash brothers have agreed to sell their controlling stake in Arkia Airlines to a group of four businessmen, concluding weeks of tension with employees and significant financial losses. The new investors will inject tens of millions of dollars into the company and assume ownership.

The deal comes after a period of strained relations between Arkia's owners, who hold approximately 80% of the company's shares, and the employees, who own about 20%. Earlier in November, the Transport Workers Union sent a warning letter and dozens of employees protested outside the company's offices in Bnei Brak. Protesters included pilots and aircraft maintenance staff.

Union representatives accused the owners of failing to provide sufficient capital, pushing for efficiency measures, and attempting to shift the burden of management failures onto the workers. They warned of further organizational actions, including a strike, if the situation did not improve.

The owners countered that the capital injection was necessary to rehabilitate the company, which has reportedly lost around $30 million in the first three quarters of the year and is expected to end 2026 with a loss of $50 to $60 million. Discussions about diluting employee shares were reportedly shelved temporarily, with alternative capital infusion methods being explored.

The Histadrut labor federation recently declared a labor dispute at the company.