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Arkia Airline Sold to Investor Group Amid Employee Concerns

The Nakash family has signed an agreement to sell its controlling stake in Arkia Airlines to an investor group, ending 20 years of ownership. The deal, which aims to stabilize the financially troubled Israeli carrier, will inject a total of $45 million into the company. The transaction was led by Avi Khormuro, CEO of the Nakash Group, who has been appointed to lead Arkia's recovery process.

11 newsrooms · 3 languages · since 12 Nov, 15:34

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What happened

01The Nakash brothers are selling their controlling stake in Arkia Airlines to an investor group after 20 years of ownership.
02The acquisition deal will inject $45 million into Arkia, including $30 million from the buyers, $8.5 million from the Nakash brothers, and $7.8 million from the Ministry of Finance.
03The acquiring group includes Kidan Dahari, Yaron Adib, Yariv Lerner, Einav Adib-Barer, and the Viola Credit Fund.
04The Nakash brothers will retain a 3% stake in the airline for regulatory and tax reasons, while Avi Khormuro will lead the recovery process.
05Arkia is facing severe financial distress, with projected losses for 2026 estimated between $30 million and $60 million.
06The Histadrut labor federation declared a labor dispute at Arkia over unilateral efficiency measures, route cancellations, and staff cuts.
07Arkia employees, who own between 20% and 22% of the airline's shares, must approve the deal to secure its finalization.

The acquiring consortium includes Kidan Dahari and Yaron Adib, owners of the Yeshpro-Tnuport Group, alongside businessman Yariv Lerner, businesswoman Einav Adib-Barer, and the Viola Credit Fund. Under the agreement, the new buyers will inject $30 million, while the Nakash brothers will contribute $8.5 million and retain a symbolic 3% stake for tax and regulatory reasons. The Ministry of Finance will provide an additional $7.8 million, fulfilling a prior commitment that was contingent on the Nakash family's investment.

The sale comes amid severe financial difficulties and labor unrest. Arkia has lost approximately $30 million so far in 2026, with annual losses projected to reach between $30 million and $60 million. To cut costs, the airline has reduced operations, including suspending its Tel Aviv-London route. These efficiency measures and staff cuts prompted the Histadrut labor federation's Transport Workers Union to declare a labor dispute, leading to protests by pilots and maintenance staff in Bnei Brak. The finalization of the deal still requires cooperation and approval from Arkia's employees, who hold between 20% and 22% of the company's shares.

Summarized by baba from the reports of 10 newsrooms. Updated 12 Nov, 23:51