Arkia following Globes' exposé on sale talks: "Operations continue as usual"

Arkia issued a statement following Globes' exposé on negotiations for its sale, clarifying that its operations continue as usual. The background: Israir and El Al are considering a purchase, while Arkia faces heavy losses of about $30 million in the first three quarters.

Following Globes' exposé on negotiations for the sale of Arkia, the company issued a statement clarifying that its operations continue as usual. The statement said that management continues to act responsibly, maintaining operational stability and developing business activity. The background to the statement is a report that Israir, owned by Rami Levy, is considering purchasing Arkia, and that El Al is also showing interest in the company. Arkia is suffering heavy losses: in the first three quarters of the year it lost an estimated $30 million, and it is expected to end the full year with a loss of $50–60 million. However, the significant hurdle appears to be the Government Companies Authority, as the acquisition of Arkia would create exclusivity for the merged company on domestic flights and harm competition on international routes.