Israir Says It Has Been Approached About Buying Arkia
The Israeli airline says it is considering an approach concerning its debt-ridden rival, but stresses that no transaction is assured.
Israir says it has been approached about a possible acquisition of Arkia, raising the prospect of a combination between two Israeli airlines as Arkia's owners examine options for the company's future.
The approach is preliminary. Israir said there is no certainty that its evaluation will lead to a transaction, and that the review does not constitute a commitment or guarantee.
Arkia is controlled by the Nakash brothers, while employees hold a 22% stake that gives them a right of first refusal on significant transactions. The airline has been up for sale over the past year.
In response to reports about its finances, Arkia said it is a privately held company that does not publish its financial data. It said it is making adjustments amid higher fuel costs and a changing geopolitical situation while keeping customers, employees and continued operations among its priorities.
The potential talks follow a demonstration by Arkia employees in Bnei Brak over concerns that a sale could affect their rights and job security. The union has threatened action over any violation of those protections.
No completed acquisition or immediate change to passengers' bookings has been announced in the reports about the approach.