Rami Levy’s Israir Eyes Arkia Takeover as El Al Also Expresses Interest
Israel’s aviation industry could be headed for a major consolidation, with Israir, controlled by businessman Rami Levy, exploring the possibility of acquiring rival airline Arkia from the Nakash family, according to reports Wednesday. El Al has also reportedly expressed interest in a potential acquisition, raising questions about the future of competition and airfare prices in Israel.
Israir, headed by CEO Uri Sirkis, confirmed that it had received an approach concerning a possible purchase of Arkia, although discussions remain preliminary and no agreement has been reached. Any transaction would represent a significant development in Israel’s airline industry, potentially combining two of the country’s leading carriers.
The reported interest comes as Arkia faces mounting financial difficulties and growing tensions between its controlling shareholders and employees. According to estimates cited in Israeli media, the airline lost approximately $30 million during the first nine months of 2026, with full-year losses potentially reaching $50 million to $60 million.
Arkia has cautioned that these figures are external estimates rather than officially disclosed financial results. As a privately held company, Arkia is not required to publish the same detailed financial statements as publicly traded airlines.
The company’s financial troubles have intensified disagreements between its employees and the Nakash brothers, who control the airline. On Tuesday, workers demonstrated outside Arkia’s offices in Bnei Brak to protest proposed restructuring measures and the possibility that their ownership stake could be reduced as part of a financial rescue plan.
Employees currently hold approximately 20% of Arkia’s shares, down from roughly 30% in previous years, according to published reports. Their representatives are demanding assurances that any restructuring or infusion of capital will preserve their rights and protect their influence over the company’s future.
The Histadrut’s transportation and seaports workers union has already warned that labor action could follow if the dispute remains unresolved.
The Nakash family is reportedly seeking to stabilize the airline through a combination of new investment and operational changes. An earlier acquisition proposal valued at approximately NIS 140 million was reportedly considered but ultimately failed to produce an agreement.
For Israir, acquiring Arkia could provide a major opportunity to expand its international operations, increase its aircraft fleet and gain access to additional routes, airport slots and aviation infrastructure.
The two airlines already account for a substantial portion of Israel’s passenger traffic. According to figures cited in the reports, Arkia carried approximately 1.44 million passengers during the period examined, compared with roughly 1.56 million passengers flown by Israir.
A merger would create a considerably larger airline with a stronger position in both domestic and international travel. It could also allow the combined company to reduce operating costs, consolidate services and expand its network of destinations.
However, the possibility of combining two major competitors is likely to attract close scrutiny from Israel’s Competition Authority, particularly because the transaction could reduce the number of independent airlines serving Israeli passengers.
El Al’s reported interest presents another potential complication. As Israel’s largest airline, any attempt by El Al to acquire Arkia would likely face substantial regulatory questions concerning market concentration and the potential effect on ticket prices.
According to additional Israeli reports, representatives of Israir and Arkia have already held an initial meeting, with another round of discussions expected later this week. Levy is reportedly personally involved in the negotiations, although neither airline has announced a binding agreement.
The Nakash family has also explored selling Arkia to other investors. One previous proposal reportedly involved American investor Elliott Zemel, who offered approximately NIS 140 million for the airline, but the negotiations collapsed. More recent reports indicate that the owners have sought approximately NIS 170 million for the company.
