Joe, Rafi and Avi Nakash control Arkia, employees hold about 20%. See who owns the airline, who wants to buy it, and why the dilution fight matters now.
Arkia, the Israeli airline, is controlled by the brothers Joe, Rafi and Avi Nakash, while its employees hold roughly 20% through a workers' corporation, according to Israeli press reports. As of November 8, 2026, the owners want to inject new capital that would dilute that employee stake, workers are threatening a strike, and Israir, controlled by retailer Rami Levy, is weighing a takeover.
Most of the detail below comes from Hebrew-language reporting by Calcalist, Bizportal, Davar, ICE and Mako, with English coverage from Globes and The Times of Israel filling in the Israir angle. Arkia is a private company and publishes no financial statements, so every figure here is attributed to the outlet that reported it. For the structural background on both carriers, see Olam's explainer Israir and Arkia: Who Owns Israel's Domestic Airlines?
Who owns Arkia (ארקיע)?
Arkia is owned by two groups: the Nakash family, which holds a large majority, and the airline's employees, who hold a minority through a corporation known in Hebrew as תו"ת. The exact percentages differ by outlet, which is itself part of the story, because the employee stake has been shrinking.
| Holder | Reported stake | How it is held |
|---|---|---|
| Joe, Rafi and Avi Nakash | About 80% (Bizportal) to 89% (Globes English) | Through a holding company that Calcalist names as Aviation Holdings (החזקות תעופה) |
| Arkia employees | About 20%, with reports ranging from 18.5% to 22.5% | Through the workers' corporation Tot |
The employee stake was originally about 30%, according to Calcalist and Globes, and fell after earlier owner capital injections. That is consistent with older reporting that put the Nakash family at about 70% when employees held 30%. ICE reported the employee stake at 22.14% in March and 18.5% in July of this year. Globes English describes the employee holding as 20% after dilution from an original 30%, and The Times of Israel adds that the structure gives employees a right of first refusal on material corporate transactions.
Who are Joe, Rafi and Avi Nakash?
The Nakash brothers acquired Arkia in 2006, according to Globes. JNS reports that they own the airline primarily through Jordache Enterprises. For the wider story of the family's capital, see Olam's profile The Nakash Dynasty: Three Generations of Syrian-Jewish Capital.
The three brothers are no longer aligned on Arkia, according to Calcalist. It reports that Avi Nakash is no longer involved in running the company and acts only as a shareholder. His brothers Joe and Rafi returned Avi Hormaro, the Nakash Group CEO, to manage the matter on their behalf, and Hormaro is reportedly in a bitter dispute with Avi Nakash. The Nakash Group itself said Hormaro was named to run the situation for the three brothers, according to a statement it gave Mako.
Why do the owners want to dilute the employees?
The owners say Arkia needs a major capital injection, and they have tied it to two conditions: a significant dilution of the employee stake and a recovery plan with efficiency measures. Calcalist and Bizportal report estimated losses of $30 million to $40 million this year, driven mainly by a jump in jet fuel prices.
In a letter to employees, the holding company said Arkia needs substantial new capital, partly to receive a state grant. According to the letter as reported by Calcalist, the state conditions the grant on a parallel investment by shareholders. The letter also warned that shareholders who do not participate may be diluted, and it invited employees to put in their proportional share to keep their holding.
The Nakash Group has also publicly pointed to the company's condition under CEO Oz Berlovitz, according to Mako. Bizportal reports the group told him to present a stabilization plan while it examines all alternatives.
What do Arkia's employees want (העובדים)?
Employees want the dilution cancelled, the efficiency steps frozen, and the owners to stop using outside consultants that the union says bypass worker representatives. The Histadrut's transport union sent management a warning letter, and workers protested outside the company's offices in Bnei Brak on November 3 and threatened a strike.
Workers argue that the owners are preparing Arkia for sale. Calcalist reports they believe any buyer will pay less for a company in which employees hold real influence over decisions. Employees point to their history of sacrifice: they agreed to the layoff of 400 workers several years ago and to a 50% pay cut during the COVID year, according to Calcalist. Bizportal adds two facts that cut against a collapse narrative: a labor agreement signed with pilots about six months ago runs until 2028, and the airline opened sales for the 2027 season to roughly 40 destinations in October.
Who wants to buy Arkia?
At least three groups have been reported as interested, and no deal is signed. Israeli press reports differ on who is talking to whom, and the brothers themselves are not speaking with one voice.
Israir and Rami Levy
Israir Group, controlled by retailer Rami Levy and managed by CEO Uri Sirkis, has been reported by Globes as moving to acquire Arkia. Israir confirmed receiving a proposal and said the review is preliminary, and Sirkis told employees it is not certain to produce a signed deal. Mako reports Levy bought control of Israir together with businessman Shalom Haim in a deal approved in early 2021, at a valuation of NIS 162 million. For Levy's retail empire, see Olam's guide to who owns Israel's supermarket chains.
Bizportal reports that Levy met Hormaro this week and did not commit to a deal. Estimates cited there suggest Israir would need roughly $40 million to complete a purchase.
Yariv Lerner, the Veror family and Avi Elkayam
Calcalist reports that businessman Yariv Lerner, the Veror family and Avi Elkayam agreed a preliminary outline with Avi Nakash and the employees. Calcalist adds that Joe and Rafi Nakash are not part of those talks and deny them, and that they may inject capital themselves, which would derail the move.
The Airports Authority workers' committee
Bizportal reports that the workers' committee of the Israel Airports Authority (רשות שדות התעופה), led by Pinchas Idan, is considering becoming an owner and funding the purchase from the authority employees' pension fund, estimated at about NIS 4 billion. The committee also floated a smaller stake of 15% to 20%. Bizportal puts Arkia's value at NIS 140 million to NIS 180 million, so a one-fifth stake would cost roughly NIS 28 million to NIS 36 million. The committee says it would proceed only if the numbers work, and the next step is a meeting with the owners.
What stands in the way of a sale?
Several obstacles overlap. The Times of Israel notes that any Israir deal would face close scrutiny from the Competition Authority, since Israel's commercial aviation is dominated by four operators: El Al, Israir, Arkia and Air Haifa. Employees hold a right of first refusal on material transactions, and they have already shown they will resist dilution. The owners are divided among themselves. Arkia's losses mean a buyer would likely have to inject capital on top of the purchase price.
There is also a history of failed deals. Olam's domestic airlines explainer summarizes Globes reporting on talks in February 2026 to sell control to American investor Elliot Zemel, which broke down amid legal threats, after which the process widened to roughly ten bidding groups. Calcalist now reports that the owners had turned to a deal with New York businessman Ezra Younger, who wanted to stop operations on Shabbat, and employees opposed that. Earlier merger attempts, including a planned reverse merger into a listed shell, also fell through, according to Globes.
Key Hebrew terms in the Arkia story
- דילול (dilution): issuing new shares so existing holders own a smaller percentage.
- בעלי השליטה (controlling shareholders): the Nakash brothers.
- תו"ת (Tot): the corporation through which employees hold their Arkia shares.
- תוכנית הבראה (recovery plan): the efficiency program the owners attach to new capital.
- ההסתדרות (the Histadrut): Israel's labor federation, whose transport union sent the warning letter.
What to watch next
Three things will decide the outcome: whether Joe and Rafi Nakash go ahead with a capital injection that dilutes employees, whether Israir moves from a preliminary review to due diligence, and whether the workers follow through on a strike threat. A strike or an unresolved labor dispute would weigh on any buyer, and a signed capital injection would change who owns Arkia before any sale.
Frequently asked questions
Who owns Arkia?
The Nakash brothers, Joe, Rafi and Avi, control Arkia through a holding company, with the remainder held by employees through a workers' corporation. Reported Nakash holdings range from about 80% to 89%, depending on the outlet.
How much of Arkia do employees own?
About 20%, according to most reports, with figures from 18.5% to 22.5%. The stake was originally about 30% before earlier capital injections diluted it.
Is Arkia losing money?
Calcalist and Bizportal report estimated annual losses of $30 million to $40 million, blamed mainly on higher jet fuel prices. Arkia is private and publishes no financial statements, so these are estimates.
Is Arkia for sale?
The owners have been reported as exploring alternatives in Israel and abroad, and Israir has confirmed a preliminary review of a possible acquisition. No deal has been signed, and the brothers are reportedly not unified on the approach.
Who controls Israir?
Israir Group is controlled by Rami Levy, who bought control with businessman Shalom Haim in a deal approved in early 2021, according to Mako. Uri Sirkis is its chief executive.
Why do employees oppose the capital injection?
They say it would dilute their stake and prepare the company for a sale at a lower price for them. The owners say Arkia needs the money to survive and to qualify for a state grant.
More Olam ownership coverage
- Israir and Arkia: Who Owns Israel's Domestic Airlines?
- Who Owns El Al? Inside Israel's Flag Carrier
- The Nakash Dynasty: Three Generations of Syrian-Jewish Capital
- Rami Levy: Israel's Discount Supermarket King
- Who Owns Israel's Supermarket Chains? Shufersal, Rami Levy
Sources and methodology
This article draws on Hebrew reports from Calcalist, Bizportal, Davar, ICE and Mako, and English reports from Globes, The Times of Israel, Ynet and JNS, all published in recent days. Ownership percentages and loss figures are as reported by those outlets and differ between them. Olam attributes stakes to the reporting outlet and does not infer ownership from names or nationality. Arkia is private, so none of these figures are audited. This story is developing and will be updated.
How we report: Olam stories draw on public filings, company disclosures and named sources, checked by our editors. Read our methodology · Corrections
