There are currently three large airlines in Israel, the largest of which is El Al, which currently has a fleet of just over 40, Israir with about nine aircraft and Arkia, which is considered the smallest of the three with five aircraft in the fleet at present.
Yesterday, El Al announced to the stock exchange that the company has begun negotiations to purchase Arkia shares, stating that these are in the initial stages and that the purchase, in the event of a ceiling, should receive approval from the authorities and undergo a process.
If the deal is made, the impact on the Israeli aviation industry will be significant, the companies will merge, the systems will be merged and thus the subsidiary will be able to offer services that will include flights, vacation packages and other services.
El Al has undergone significant changes in recent times, Photo: Photo: Coco
In conversations with senior executives in the Israeli aviation industry, they explain that there is no programming for three airlines in Israel and that the move should have happened years ago, especially now that competition with the new companies entering Israel has increased and will affect the economic situation of Israeli companies.
In recent years, there have been quite a few reports of a merger between Arkia and Israir, but the move has not materialized and now, as mentioned, these are initial stages towards the merger of El Al and Arkia.
El Al is currently facing quite a few difficulties, especially with the company's employees, who are afraid of another wave of layoffs due to the expected closure of the subsidiary Sun Dor, which has so far also operated on Saturdays.
The company's workers' committee issued a letter yesterday in which they make it clear that they have not reached an understanding with the new owners.
El Al's announcement to the stock exchange reads: "The company is pleased to update that it has begun contacts with Arkia Airways and Aviation Services Ltd. (" Arkia ") to examine a possible transaction, according to which the company will purchase Arkia shares in exchange for allocating the company's securities to Arkia shareholders (" the potential transaction " ").
It is clarified that as of the date of this report, no memorandum of understanding and / or binding agreement has been signed between the parties and negotiations are in its infancy. By law to complete the potential transaction. "