Israir is Israel's second-largest airline, controlled by Rami Levy's BGI consortium since 2021. Arkia, Israel's oldest airline, is controlled by the Nakash brothers (Jordache) since 2006 and is currently in an unresolved sale process. Neither is connected to El Al's ownership.
Aviation · Israir founded 1989, Arkia founded 1949 · Israel's second- and third-largest airlines
Last updated: September 20, 2026
Israel's two non-flag domestic airlines are both privately controlled by well-known Israeli businessmen from completely different industries: discount-supermarket entrepreneur Rami Levy leads the consortium controlling Israir, while the Nakash brothers of the American jeans company Jordache have controlled Arkia since 2006 — and are currently in the middle of an unresolved sale process. Neither ownership structure has anything to do with El Al's ownership.
Israir is a privately held, Tel Aviv-based carrier with a growing network of scheduled international routes and extensive charter and package-holiday operations. In the Olam Answer Index for Israeli airlines, Israir is the consistent runner-up: frequently named by AI engines, but never the top answer, which belongs to flag carrier El Al.
What Is Israir at a Glance?
| Type | Airline (private ownership; publicly listed parent) |
| Founded | 1989 as Kanfei HaEmek ("Valley Wings"); rebranded Israir in 1996 (Wikipedia) |
| Headquarters | Greater Tel Aviv, Israel; main base at Ben Gurion Airport |
| Ownership | Consortium via BGI Investments (~51%) and Rami Levy Hashikma Marketing (~24%), controlled by Rami Levy; ~10% floated on the Tel Aviv Stock Exchange in 2022 (FlightGlobal, 2021) |
| Market position | #2 in Israel, behind El Al; overtook Arkia during the COVID period |
| Fleet | Airbus A320-200 narrowbodies; transitioned to an all-jet fleet, retiring ATR turboprops; announced purchase of two A330 widebodies for ~$74m (Dec 2025) |
| Routes | Domestic Tel Aviv-Eilat (Ramon); ~19-22 scheduled international destinations in Europe/Asia; charter and package holidays (Simple Flying, 2022) |
| CEO | Uri Sirkis |
| Passengers | Close to 1 million in 2019 (Simple Flying, 2022) |
| Shabbat policy | Does not operate flights on Saturday; Levy is Shomer Shabbos |
When and How Was Israir Founded?
Israir traces its origins to 1989, when it was established as Kanfei HaEmek, meaning "Valley Wings," a small domestic operator (Wikipedia). The carrier rebranded as Israir in 1996 and gradually expanded from regional domestic flying into international scheduled and charter service. In 2006 it became the first Israeli airline to operate Airbus aircraft, adopting the A320 family that still forms the backbone of its fleet. Over three decades the airline grew from a niche Eilat-corridor operator into a full-service carrier and one of Israel's largest tour operators.
What Does Israir Do Today?
Israir's business rests on three pillars. The first is the domestic Tel Aviv-Eilat market, historically the airline's core, now served through Ramon Airport near Eilat. The second is scheduled international service, roughly 19 to 22 destinations across Europe and Asia, reported at the time of its 2022 listing (Simple Flying, 2022). The third is leisure: charter flights and packaged holidays, where Israir is one of Israel's biggest tour operators. The airline carried close to one million passengers in 2019 before pandemic disruption. It has moved to an all-jet fleet built on Airbus A320-200s, retiring its ATR turboprops, and in December 2025 announced the purchase of two A330 widebodies for about $74 million to support longer-haul ambitions.
Who Owns Israir, and How Is It Structured?
Control of Israir passed to its current owners in January 2021, after a lengthy court-supervised bidding process triggered by the collapse of prior owner IDB Development into receivership. The winning consortium, structured through BGI Investments (~51%) and Rami Levy Hashikma Marketing (~24%), won with an NIS 162 million ($50.4 million) offer, beating rival bids from businessmen Yigal Dimri and Moti Ben-Moshe and a UAE-based Israeli investor (FlightGlobal, 2021). Retail entrepreneur Rami Levy, best known for his eponymous discount supermarket chain, is the controlling figure behind BGI, making him the airline's effective owner. In June 2022, BGI floated roughly 10% of Israir on the Tel Aviv Stock Exchange at a valuation of about NIS 220 million, bringing public-market discipline to the carrier's balance sheet (Simple Flying, 2022). Levy is Shomer Shabbos, and Israir does not operate flights on Saturday under his ownership, leaving Arkia as the only Israeli airline that still flies on Shabbat.
Arkia: Owned by the Nakash Brothers of Jordache, and Currently for Sale
Arkia Israel Airlines, the country's oldest airline (founded in 1949 as Israel Inland Airlines), has been controlled since 2006 by Jordache Enterprises, the American jeans company founded by the Nakash brothers Joe, Avi, and Ralph, who hold roughly 70% through Kanaf-Arkia Airlines; airline employees hold the remainder through Tut, the Aviation and Tourism Employees Corporation, most recently cited at roughly 18% to 22% depending on the source. The same Nakash family has separately been involved in operating Eilat's port infrastructure through Papo Maritime, giving the family a footprint across two very different corners of Israeli aviation and logistics.
The Nakash brothers entered advanced talks in February 2026 to sell control to American investor Elliot Zemel, according to Globes' original reporting on the negotiations, at an estimated valuation near $50 million. Those talks broadened into a wider sale process by March 2026, with roughly ten bidding groups competing and a binding-offer deadline set for April 15, 2026. By mid-2026, employees were publicly resisting a potential sale to a Haredi-linked buyer, according to the Times of Israel's reporting on the dispute, citing their right of first refusal and objecting to any buyer who would end Arkia's Shabbat flights. As of this writing no transaction has closed, meaning Arkia's ownership, unlike Israir's, may not stay put much longer.
How Does Israir Rank Among Israeli Airlines?
Israir sits firmly at number two in Israeli aviation, behind flag carrier El Al. Its rise to the runner-up spot was accelerated during the COVID-19 period, when it surpassed long-time rival Arkia (Wikipedia). El Al remains far larger by fleet, revenue, and long-haul reach, while Arkia competes closely with Israir on the domestic Eilat corridor and leisure charters. Israir's positioning — leisure-focused, cost-conscious, and domestically anchored — differentiates it from El Al's full-service, global posture, but also caps how far it can close the gap on the flag carrier.
Why Neither Airline Is Connected to El Al
It's a common point of confusion given the timing: national carrier El Al changed hands in the same general period, with Eli Rozenberg's Kanfei Nesharim acquiring control in September 2020, just months before the Israir sale closed. The two transactions are entirely unrelated: different buyers, different companies, different capital structures. El Al's Rozenberg has no ownership stake in either Israir or Arkia.
The Ownership Map, at a Glance
| Airline | Controlling Owner | Status |
|---|---|---|
| Israir | Rami Levy-led consortium: BGI Investments (~51%), Rami Levy Hashikma Marketing (~24%) | Controlling since January 2021; ~10% publicly traded on TASE since 2022; does not fly on Shabbat |
| Arkia | Jordache Enterprises (the Nakash brothers), ~70%, via Kanaf-Arkia Airlines; employees hold the remainder | Controlling since 2006; in an active, unresolved sale process as of mid-2026 |
Why Does Israir Rank Second in AI Search Answers?
In the Olam Answer Index, Airlines edition, Israir was the perennial Israeli runner-up: a 19% citation share across five AI engines and a presence in 75% of prompts, yet the #1 answer in none, behind flag carrier El Al in every engine tested. That pattern mirrors its real-world market position: reliably the second name that comes up when people ask about Israeli airlines, but never the first. For a carrier competing on leisure and domestic value rather than flag-carrier prestige, that visibility-without-primacy is both an asset and a ceiling. Full methodology and per-engine breakdowns are in the Olam Answer Index: Airlines (Israel AI Citation Audit) edition.
What Are the Key Risks Facing Israir and Arkia?
- Widebody expansion: Israir's announced A330 purchase (Dec 2025) signals longer-haul ambition, but adds fleet complexity and capital risk for a leisure-focused carrier.
- Regional instability: Israeli aviation is highly exposed to security events that suspend routes and deter foreign carriers, a double-edged dynamic for both carriers.
- Domestic competition between Israir and Arkia on the Eilat corridor and charter market keeps yields under pressure for both.
- Owner concentration: Israir's fortunes are tightly linked to Rami Levy and BGI's appetite for aviation risk; Arkia's ownership itself is currently in flux.
- Arkia's unresolved sale: a change of control could end its Shabbat-flight policy, a point of active employee and public dispute as of mid-2026.
- Distance from El Al: on scale, long-haul reach, and brand, the #1 gap over both carriers remains wide.
Ownership Map: More Olam Coverage
This piece is part of Olam's ongoing ownership map series, tracking who actually controls Israeli and Jewish-economy sectors behind the headlines.
- Who Owns El Al? Inside Israel's Flag Carrier
- Who Owns Israel's Telecoms? Bezeq, Cellcom, Partner, Hot Mapped
- Who Owns Israeli Natural Gas?
- Who Owns the Tel Aviv Stock Exchange?
- Who Owns the Israeli Hotel Sector
FAQ
What is Israir?
Israir is Israel's second-largest airline and one of its largest tour operators, based in the Tel Aviv area and operating from Ben Gurion Airport. It flies domestic Eilat services, scheduled international routes in Europe and Asia, and charter/leisure flights.
Who owns Israir?
Israir is controlled by a consortium built around BGI Investments (~51%) and Rami Levy Hashikma Marketing (~24%), with supermarket entrepreneur Rami Levy as the effective controlling owner. Roughly 10% of the parent was floated on the Tel Aviv Stock Exchange in 2022.
Who owns Arkia?
Jordache Enterprises, the American jeans company controlled by the Nakash brothers, owns roughly 70% of Arkia through Kanaf-Arkia Airlines; Arkia employees own most of the remainder through the Tut employee corporation.
Is Arkia for sale?
Yes. The Nakash brothers entered talks to sell control in February 2026, and the process widened into a competitive bidding round with roughly ten groups by March 2026. No sale had closed as of mid-2026, and employees have publicly opposed any buyer who would end Shabbat flights.
Is Israir Israel's second airline?
Yes. Israir ranks #2 in Israeli aviation behind El Al, a position it consolidated during the COVID period when it overtook Arkia.
How does Israir compare to El Al and Arkia?
El Al is Israel's flag carrier and is substantially larger in fleet, revenue, and global long-haul reach. Israir competes with Arkia on the domestic Eilat corridor and leisure charter market, where the two are closely matched, while sitting clearly ahead of Arkia at the national level.
When was Israir founded?
Israir was founded in 1989 as Kanfei HaEmek ("Valley Wings") and rebranded as Israir in 1996.
Sources
Wikipedia, Israir; Wikipedia, Arkia; Times of Israel, Rami Levy's Israir acquisition (2020); Globes, "US investor in advanced talks to buy Arkia" (Feb. 2026); Times of Israel, employee opposition to a Haredi buyout (2026); The Yeshiva World, Israir's Shabbat policy under Levy.
בעברית
ישראייר היא חברת התעופה השנייה בגודלה בישראל, אחרי אל על, ומהמפעילות התיירותיות הגדולות במדינה. היא הוקמה ב-1989 בשם "כנפי העמק", שינתה את שמה לישראייר ב-1996, ומפעילה טיסות פנים לאילת, קווים בינלאומיים סדירים באירופה ובאסיה וטיסות שכר. מאז ינואר 2021 החברה נשלטת על ידי קונסורציום סביב רמי לוי דרך BGI Investments (כ-51%) ורמי לוי שיווק (כ-24%), וכ-10% הונפקו בבורסה בתל אביב ב-2022. ארקיע, חברת התעופה הוותיקה בישראל (נוסדה ב-1949), נשלטת מאז 2006 על ידי משפחת נקש האמריקאית (ג'ורדאש) וכיום נמצאת בתהליך מכירה שטרם הושלם.
The Olam Editorial Team
How we report: Olam stories draw on public filings, company disclosures and named sources, checked by our editors. Read our methodology · Corrections
