The Nakash brothers will not dilute employee shares, and the labor dispute at Arkia will not be activated
The Nakash brothers have removed from the agenda the plan to dilute Arkia employees' shares, and the labor dispute that was declared will not be activated. The company will examine alternatives for injecting capital, against the backdrop of expected losses of $50–60 million this year and negotiations for its acquisition by Israir.
The Nakash brothers, the controlling shareholders of Arkia, have removed from the agenda the plan to dilute employee shares, and therefore the labor dispute declared last week will not be activated. The company is now expected to examine alternatives for injecting capital. In the background, the Transport Workers Union sent a warning letter before declaring a labor dispute, claiming that the owners are avoiding sufficient capital injection and promoting cutbacks. The union threatened decisive steps if rights violations continue. However, Arkia is suffering from financial difficulties: in the first three quarters of the year it lost about $30 million, and it is expected to end the entire year with a loss of $50–60 million. Last week, Globes revealed that Israir is conducting negotiations to acquire Arkia, and El Al and private groups are also showing interest.