Arkia Staff Protest Potential Sale

Arkia Israel Airlines operates domestic and international routes, but its workforce is currently focused on a dispute over ownership structure. On Tuesday, employees staged a demonstration in Bnei Brak, east of Tel Aviv, to oppose moves by the airline's controlling owners.

Approximately 300 staff members gathered outside the carrier's offices. They plan to contest any cost-cutting measures, workforce reductions, or changes to employee shareholding that occur without their approval. One protester shouted that the owners want to end employees' ability to control their fate, adding that the staff would not allow it.

The protest followed a board meeting held on Sunday. At that session, workers learned that the Nakash brothers, who control more than 70 percent of Arkia, intend to raise new capital. This financial injection would dilute the 22.1 percent stake held by employees through the TUT, Aviation & Tourism Workers Corporation Ltd. That entity grants workers a right of first refusal on major transactions.

Staff members argue the capital raise is a precursor to a sale rather than a solution to financial strain. They believe a buyer will offer a lower price if workers hold significant influence over decisions. Over the past year, the Nakash brothers have sought a purchaser for their stake. Earlier in the summer, talks with an ultra-Orthodox US entrepreneur to buy the airline collapsed. That potential buyer had proposed halting flights on the Jewish Sabbath and holidays.

Arkia expects to lose more than $30 million in 2026, according to the Israeli financial daily Calcalist. The company stated that it does not publicly disclose results as a private entity. It acknowledged that the aviation industry faces severe cost pressures, citing a sharp rise in jet fuel prices, higher input costs, and a shifting security environment. The airline said management is making necessary adjustments and pursuing operational efficiencies to address these economic headwinds.

The Transportation and Seaport Workers' Union sent a letter on Monday to the Nakash brothers and CEO Oz Berlowitz. The union accused the owners of considering restructuring measures unilaterally. It threatened industrial action, including a labor dispute, if workers' rights or job security are violated. The union demanded an immediate freeze on all contested measures while it remains ready to negotiate.

The Nakash brothers responded in a statement calling Arkia a strategic asset for the State of Israel and the traveling public. They described an independent Israeli aviation sector as vital during these challenging times. The group instructed Berlowitz to immediately present an action plan and solutions. It said it continues to weigh alternatives to ensure the carrier's operations remain intact.

Arkia has expanded its long-haul operations over the past year, adding routes to New York, Phuket in Thailand, and Hanoi in Vietnam. The airline continues to fly multiple routes to major European cities alongside its domestic network.