Skift Take

Israel's El Al hopes that a merger with its smaller rival Arkia will help it emerge stronger from the pandemic. But the Israeli government, which bailed out the flag carrier, may have other ideas when it comes to reducing competition.

Israel's flag carrier El Al Airlines, forced to slim down following a government bailout during the pandemic, said on Thursday it has entered a non-binding memorandum of understanding to buy smaller local rival Arkia. Under the proposed deal, Arkia would become a fully-owned subsidiary of El Al. In return, Arkia's shareholders would get a 10-14 percent stake in El Al through shares and options, the airline said in a regulatory filing. Arkia, in its own statement,