Arkia employees protest cost-cutting moves ahead of potential sale, fearing for jobs

Arkia Israel Airlines employees demonstrated in Bnei Brak east of Tel Aviv on Tuesday against moves by the carrier’s controlling owners ahead of a potential sale, which they fear will undermine workers’ rights and job protections.

An estimated 300 employees gathered in front of the airline’s offices, threatening to fight any cost-cutting measures, workforce reductions or dilution of employee shareholding carried out without their consent.

Over the past year, the Nakash brothers, Arkia’s controlling owners, have been seeking a buyer for their stake of more than 70 percent in the Israeli carrier. Employees own 22.1 percent through the TUT – Aviation & Tourism Workers Corporation Ltd., a holding that gives them a right of first refusal on material transactions.

“They simply want to end our ability to control the fate of employees, and we will not let them,” one employee shouted during the demonstration.

The protest comes after workers learned at a board meeting on Sunday that the Nakash brothers intend to inject fresh funds into Arkia by raising capital, a move that would dilute the employees’ stake. The need for fresh capital comes as Arkia is expected to record losses of more than $30 million in 2026, according to the Israeli financial daily Calcalist.

Employees claim the real purpose of the move is not to address the airline’s financial difficulties but to prepare the ground for an attractive sale, since a potential buyer would be unlikely to submit a high bid for a company where workers hold significant sway over decision-making.

Over the summer, Arkia employees vowed to fight a potential buyout by an ultra-Orthodox US entrepreneur who insisted on halting flights on Shabbat and Jewish holidays. Those talks ultimately fell through.

Owned by Jordache Enterprises, controlled by the Nakash brothers, Arkia operates domestic flights, multiple routes to major European cities, and, over the past year, significantly expanded its operations to long-haul destinations, including New York, Thailand’s Phuket, and Vietnam’s Hanoi.

While Arkia said that as a privately held company it does not publicly disclose its financial results, the local airline acknowledged that severe cost pressures have strained the aviation industry over the past year.

“2026 presents major challenges to the entire aviation sector,” the company said. “The sharp surge in jet fuel prices, rising input costs, and a shifting security landscape are impacting airlines both in Israel and globally, and Arkia is no exception.”

Arkia added that its management is “steering the company responsibly and prudently, implementing necessary adjustments, pursuing ongoing operational efficiencies, and addressing economic headwinds.”

In a letter sent on Monday to Arkia’s controlling owners and CEO Oz Berlowitz, the Transportation and Seaport Workers’ Union charged that restructuring measures were being considered unilaterally, bypassing workers who are partners in the carrier.

The union warned that workers will not accept any violation of their rights, job security or status at the company, and threatened industrial action, including a labor dispute. While expressing readiness to negotiate, the union demanded an immediate freeze on all contested measures.

“Arkia is a strategic asset for the State of Israel, its dedicated workforce, and the broader traveling public,” the Nakash brothers said in a statement. “A robust, independent Israeli aviation sector is vital, especially during these challenging times when keeping our skies open and ensuring flight continuity are matters of urgent national interest.”

The group added that in light of the current challenges, it has instructed Berlowitz to “immediately present an action plan and solutions,” noting it will continue to weigh alternatives to ensure the carrier’s operations remain intact.