Israir CEO Sets Out Case for Possible Arkia Acquisition

TEL AVIV — Israir is in preliminary talks to buy rival Arkia, Chief Executive Uri Sirkis told employees in a letter reported by Reuters on November 8. He argued that combining the carriers could reduce operating expenses and strengthen competition with international airlines.

The approach predates the weekend report. In a November 4 stock-exchange disclosure, Israir Group said it had received a request to examine purchasing Arkia. At that stage, the company said it had not yet examined the approach and cautioned that any examination might not result in a transaction.

Two Smaller Carriers Behind El Al

Reuters describes Israir and privately held Arkia as Israel’s second- and third-largest airlines, behind El Al. Israir accounted for 12% of passengers using Tel Aviv’s Ben Gurion Airport so far in 2026, with Arkia at nearly 11%, according to the report.

Those figures put their combined share at approximately 23% of the airport’s passenger traffic. They do not represent a national airline-market share or establish what share a merged business would retain.

Sirkis presented cost savings as a potential benefit. The Reuters report does not provide a purchase price, quantified savings estimate or agreed integration timetable.

Arkia Says Operations Continue

Arkia said its operations were continuing normally, Reuters reported. Its Nakash family owners said they were seeking a recovery solution. Reported losses remain unconfirmed by published company accounts; Arkia says it does not disclose financial results as a private company.

The reviewed disclosure and Reuters report establish neither a completed purchase nor a binding acquisition agreement.