Arkia Seeks Lasting U.S. Authority Amid Israir Acquisition Talk

Arkia Israeli Airlines has applied for a permanent U.S. foreign air carrier permit as rival Israir considers a potential acquisition of the airline.

The application asks the U.S. Transportation Department (DOT) for authority to operate scheduled and charter passenger, cargo and mail services between Israel and the U.S. under the countries’ Open Skies agreement. Arkia has also applied to renew its existing exemption while the permit request is reviewed.

The airline’s current U.S. authority was first granted as an exemption in 2003 and most recently renewed in November 2024. Because Arkia submitted its latest application before that authority expired, it can continue operating while the department reaches a decision.

Arkia said granting the permit would provide “increased travel choices, greater service options, and enhanced competition” between Israel and the U.S.

The carrier began scheduled U.S. flights in February 2025, opening a three-times-weekly service between Tel Aviv Ben Gurion International Airport and New York John F. Kennedy International Airport (JFK), initially using an Airbus A330-900 wet-leased from Iberojet. Arkia continues to rely on wet-leased widebodies for the service.

The CAPA – Centre for Aviation Fleet Database shows an A330-200, an A330-300 and a Boeing 787-9 in operation, alongside eight narrowbody and regional aircraft. The DOT application separately lists seven aircraft that Arkia owns or dry leases: three A320ceos, two A321LRs and two Embraer E195s.

The filing comes as Israir weighs a possible purchase of Arkia. In a Nov. 4 stock exchange disclosure, Israir confirmed that it had been approached about an acquisition but said it had not yet formally considered the proposal. It added that there was no certainty the approach would result in a transaction.

Should an offer materialize, the degree of overlap between the airlines’ networks is likely to be a key issue for regulators.

OAG Schedules Analyser data shows Arkia and Israir offered almost 5 million scheduled seats between January and November 2026, up 11.6% from the same period a year earlier. Israir accounted for about 2.62 million seats, down 1.1%, while Arkia’s capacity increased 30.1% to approximately 2.38 million.

The two carriers competed on 32 airport pairs during the period. Those routes accounted for approximately 4.21 million seats, or 84.2% of their combined capacity. About 88% of Arkia’s seats and 81% of Israir’s were offered in markets served by both airlines.

Tel Aviv-Eilat was their largest shared market, with almost 580,000 two-way seats between January and November. Athens, Greece, ranked second with about 439,100 seats, followed by Larnaca, Cyprus, with 384,900; Batumi, Georgia, with 359,000; and Budapest, Hungary, with 248,900. They also competed in markets including Paphos, Cyprus; Tbilisi, Georgia; Rhodes, Greece; Prague; and Rome.

Additionally, New York has recently joined that list. Israir began Tel Aviv-JFK flights in September, placing the airlines in direct competition on the only U.S. route either currently serves.

However, Arkia alone served destinations including Bangkok; Hanoi, Vietnam; Phuket, Thailand; Amsterdam; and London Stansted during the period. Israir’s exclusive markets included Berlin; London Luton; Salzburg, Austria; and Naples, Italy, as well as several destinations in the Balkans and Mediterranean.