Arkia is in negotiations with the workers in an attempt to return to activity

Arkia, controlled by the Nakash brothers, is in negotiations with the workers in an attempt to return to activity. One of the conditions for this is the receipt of a NIS 100 million State guarantee loan approved by the Finance Ministry. However, as a condition of obtaining the loan, the owners are required by the banks to provide the company with a total of $ 6.5 million.
Markie said: "Arkia is an airline with assets and liabilities operating to obtain a state guarantee loan.
According to the outline for a return to activity, which is currently under negotiation between management and employees who own 30% of the company, the owners will waive the loan of owners who previously gave the company an estimated NIS 50 million, thus strengthening the company's capital. In return, the workers will give up their share of the Hod hotels in the Dead Sea and the Frans Hotel in Amsterdam belonging to Arkia. The Hood Hotel was purchased by Arkia through Arkia in 2011 from Pisgat. It should be noted that a privately owned Arkia company does not publish data, and its losses in 2019 are estimated at $ 15 million.
A major obstacle to progress in these negotiations lies in the fact that, alongside the hotel concession, Arkia's management requires the dismissal of about 200 of the company's 550 employees. This is because it intends to return to a limited activity, which includes flights to Lyon and Eilat only. As part of this policy, Arkia recently returned two leased aircraft - Air Bass 321 'Ofra Haza' and Ambrier - to flights in the area.
Arkia's owners aim to merge with Israir, with the aim of creating a larger airline with improved competitiveness, but at this stage the merger plans did not go beyond the stage of talk. At the same time, Israir - whose state guarantee loan has also been approved by the banks - has not yet exercised its right and is in negotiations with the banks for additional requirements beyond just collateral.