Two Major Israeli Airlines in Merger Talks
Israeli airline Israir has entered into talks to acquire Arkia, one of the country’s leading carriers. The potential merger between Israel’s second- and third-largest airlines, after flag carrier El Al, could create an airline group operating a fleet of 20 aircraft, including five wide-body and 15 narrow-body jets.
The acquisition initiative reportedly came from the Nakash family, Arkia’s controlling shareholders, as the airline faces financial difficulties. Arkia is believed to have recorded losses of approximately $30 million during the first nine months of 2026, although its financial results have not been publicly disclosed. In a letter sent to employees on November 6, Israir CEO Uri Sirkis stated that a potential merger could reduce operating costs and strengthen the airline’s competitiveness against international carriers.
Together, the two airlines accounted for approximately 23% of passenger traffic at Tel Aviv Ben Gurion Airport in 2026. However, the acquisition process remains at an early stage. Any potential merger would require approval from the Israel Competition Authority. No binding agreement has been signed between the parties, and no official timeline for the acquisition has been announced.
