Israir in preliminary talks to acquire Arkia — Jerusalem Post

Israeli airline Israir is holding preliminary talks on acquiring its main local competitor, Arkia, the Jerusalem Post reports. Israir CEO Uri Sirkis wrote about this in a letter to company employees seen by Reuters.

Israir and privately held Arkia are the second- and third-largest Israeli airlines after flag carrier El Al. Israir’s market value is estimated at $144 million. Since the beginning of 2026, Israir’s share of passengers at Ben Gurion Airport near Tel Aviv has been 12%, while Arkia has nearly 11%.

Israir’s plans

Sirkis said that Israir had invested more actively in infrastructure, technology and future growth. In particular, the company acquired eight aircraft, entered into partnerships with hotels and obtained a stake in a company operating in the credit card sector.

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According to him, Israir plans to carry 3.5 million passengers by 2030 and operate a fleet of around 20 aircraft. The company’s head believes that, if the deal is approved, the combined group will be able to compete with major international carriers on price and service quality, as well as save on operating costs.

Arkia’s situation

Arkia said it continues to operate as usual, adapts to changes and maintains operational stability. Local media reported that the company posted a $30 million loss in the first three quarters of 2026, but Arkia stressed that, as a private company, it does not publish financial results, so these figures are not official.

Arkia’s owners, the Nakash brothers, said they are seeking solutions to overcome the crisis and restore the company, with attention to the interests of passengers and employees. Both carriers traditionally operated mainly domestic and European flights, but have recently begun flying to New York. Arkia also operates flights to Thailand and Vietnam and plans to launch flights to the Philippines in January.