Arkia Airlines Ltd. is expanding its fleet. In January 2014, it will take ownership of a 110-seat Embraer plane for domestic and international routes, and in the summer, it will add a jetliner for flights to the Greek islands and other European destinations. In 2016-18, Arkia will add four Airbus A231-NEO jetliners.
Arkia currently has eight planes: two Boeing 757-300s, an Embraer 195, and five turboprop ATR 72s.
Arkia's announcement comes ahead of an announcement by El Al Israel Airlines Ltd. (TASE: ELAL) tomorrow that it will launch five low-cost routes to European and Mediterranean destinations. Israel's Open Skies agreement with the EU is getting into high gear. Ben Gurion Airport is set to open the western gate at Terminal 1, and new low-cost carriers are announcing routes between Tel Aviv and European cities, which will lower fares for Israeli tourists and expand their choices of destinations. Arkia is also considering new destinations in Europe.
In a separate development, Arkia and its employees today signed a new multiyear labor contract, which the airline hopes will help it to expand.
Arkia chairman Avi Nakash said that the Nakash group sees Arkia as a strategic business asset for its operations in Israel, and that it will strengthen the airline to be an leader in the country's tourism industry.
Published by Globes [online], Israel business news - www.globes-online.com - on November 25, 2013
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