Israir is considering acquiring Israeli rival Arkia, a move that could create a larger airline group with five widebody and 15 narrowbody aircraft under the Israeli flag. The proposed fleet structure was outlined by Israir CEO Uri Sirkis in a letter to employees, where Sirkis addressed the potential acquisition and its benefits for the company’s future growth.
The deal could strengthen Israir position against international competitors, expand its operational capacity and reduce costs. However, the acquisition remains at a preliminary stage, with no agreement reached between the parties.
The proposal follows an approach from Arkia controlling shareholders, the Nakash family. On November 4, Israir confirmed that it had been contacted about a possible purchase. An initial meeting involving Israir chairman Moti Hazan, CEO Sirkis and Arkia shareholder representative Avi Hormaro subsequently took place. Israir has not yet begun financial due diligence.
In a letter to employees on November 6, 2026, Sirkis described the acquisition assessment as preliminary and stressed that there was no certainty it would result in a transaction. He also highlighted Israir investments in aircraft, infrastructure and technology as factors supporting its ability to consider the deal.
Arkia is seeking a buyer amid financial difficulties, having reportedly recorded losses of approximately $30 million during the first nine months of 2026. The potential sale is further complicated by disagreements between the owners and employees, who hold around 20% of the airline. Workers demonstrated against the shareholders’ actions on November 3, raising concerns about their ownership rights and employment conditions.
Any acquisition would require approval from Israel Competition Authority, as combining the country’s second- and third-largest airlines could significantly affect competition in the local aviation market.
For now, Israir has not announced an acquisition agreement or a timetable for completing the process.