Arkia Employees Seek to Submit Competing Bid for Airline

Following an emotional overnight negotiation, representatives of Arkia airline employees have three days to submit a competing offer to purchase the company. The employees' union, Tu't, is in talks with potential investors to match the bid submitted by the Nakash brothers. The current deal involves a $45 million cash injection into Arkia, with the Nakash brothers retaining a 3% stake. The employees, who previously held a 22% share through Tu't, are negotiating their future stake and employment terms.

The employees are now negotiating with a purchasing group that includes Yariv Lerner, Kidan Dahari, Yaron Adib, and Einav Adib-Berrer. Notably, Lerner was previously part of a group exploring a joint bid with the employees, alongside the Varor family and Avi Elkiam. Dahari and Adib, owners of real estate companies Yeshpro and Tanuport, had been in separate negotiations with Avi Hurumero, who represented the Nakash brothers in the sale.

Last week, dozens of employees protested against plans to dilute their shareholding. The Transport Workers Union in the Histadrut declared a labor dispute, citing the company's management for proceeding with workforce reductions and route cancellations without employee agreement. Arkia is estimated to have lost between $30 million and $60 million in the first three quarters of the year.

Even if a competing offer is not submitted by Monday afternoon, negotiations with the group that signed with the Nakash brothers are ongoing, with a source involved in the talks expressing optimism about reaching an agreement.