El Al approves non-binding deal to buy smaller rival Arkia
Israeli flag carrier El Al Airlines has agreed a non-binding deal to buy smaller carrier Arkia.
The airline announced on February 3, 2022 that it has approved a non-binding memorandum of understanding to purchase all of the shares of Arkia.
“Approval of the Memorandum of Understanding is another step on the way to a possible signing of a binding agreement,” El Al chairman Amikam Ben-Zvi commented. “We still have a long way to go before the transaction to acquire Arkia is completed, as part of El Al's strategy to expand into other areas of activity.”
El Al announced in October 2021 that it was in talks to purchase Arkia, which focuses on the leisure market.
The flag carrier said on February 3, 2022 that the transaction to buy Arkia is part of a strategy to expand into other areas of activity to offer travelers to Israel a “complete tourism package”, including flights, hotels, car rental, insurance and tickets for entertainment and events.
Israel has implemented strict travel restrictions to contain the spread of COVID-19, hurting demand for El Al’s services. The government therefore agreed on an additional aid package for El Al at the end of 2021.
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