Israeli airline Israir is in preliminary talks to acquire its main domestic rival, Arkia, as it seeks to strengthen its position against foreign carriers, Chief Executive Uri Sirkis told employees in a letter.
The discussions come amid reports of financial difficulties at privately owned Arkia. Israeli media have reported that the airline recently recorded a loss, although its financial results have not been published.
Arkia’s owners have acknowledged that the company is facing a “crisis” and said they are working to find a solution.
The airline, however, stressed that “its operations continue as usual” and said it was “looking forward, making the adjustments required by a changing reality, maintaining operational stability, and continuing to develop its activity.”
Israir, valued at $144 million, and Arkia are Israel’s second- and third-largest airlines respectively, behind national carrier El Al.
(Reuters)
