Sale Deal for Arkia Signed Amid Labor Dispute

In depth

The Histadrut declared a labor dispute at the airline Arkia, in protest against efficiency and manpower reduction plans being advanced by the controlling shareholders. The workers' representatives claim that company management is cancelling routes and advancing cutbacks without agreement with them.

The workers claim that company management is delaying the sale deal, which they say is at advanced stages, and that this raises concern of insolvency. Following the declaration, the workers may begin a strike in about two weeks. According to them, the company's losses since the beginning of the year are estimated at over $30 million.

The Nekash brothers announced they have signed an agreement to bring investors into Arkia. Under the agreement, the buyer group, which includes Inav Adiv-Barr, Yaron Adiv, Kidan Dahri and Yariv Lerner, will inject $30 million into the company and will hold a majority of the shares. The move was led by Avi Hormaro, CEO of the Nekash group. Management said operations continue as usual and all flights are taking place according to schedule.