Nir Dagan has resigned as CEO of troubled Israeli airline Arkia Airlines Ltd. He will be replaced by Amir Erez. Arkia has been hit in the past few months by the closure of Sde Dov Airport in Tel Aviv, resulting in a drop in demand for flights to Eilat, greater competition from low-cost airlines on European routes, and disappointment at the performance of flights to India and Thailand. The airline recently closed the Thai route. 120 of its employees have received dismissal notices.
Layoffs and pay cuts as Arkia streamlines
Arkia’s employees hold 30% of its shares, and talks are taking place between worker representatives, representatives of the Histadrut (General Federation of Labor in Israel), and the company’s management, with the aim of reaching a streamlining agreement, including wage cuts.
Dagan has been CEO of Arkia for six years, since he replaced Gadi Tepper in the role. Tepper recently returned to Arkia as a director. He was at first tapped for chairman of the company, but that role was taken by Nakash Group CEO Avi Homero. The Nakash Group controls Arkia.
Dagan will apparently continue to work in aviation in the Nakash Group.
Published by Globes, Israel business news – en.globes.co.il – on January 21, 2020
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Article source: https://en.globes.co.il/en/article-1001315578#utm_source=RSS