Employees at Arkia Israeli Airlines (IZ, Tel Aviv Ben Gurion) will likely have to accept pay cuts and layoffs as part of cutbacks at the carrier, sources at the airline have told the business newspaper Globes. Arkia has around 700 employees, who hold 30% of the company's shares.

The management of the carrier, which was hit by the closure of Tel Aviv Sde Dov Airport in July, was reported to be in advanced talks with unions over the issue. Arkia currently operates 42x weekly to Eilat Ramon, previously from Sde Dov but now from Tel Aviv Ben Gurion, according to the ch-aviation capacities module, and it has suffered a drop in traffic as a result of shifting to Ben Gurion.

Avi Homero, who recently took over as Arkia's chairman, confirmed to Globes that "the change in market conditions and the closure of Sde Dov are forcing Arkia to adopt a substantial streamlining plan, including personnel cuts and wage cuts."

"The workers are the company's business partners, and they realise that streamlining is essential and necessary. The closure of Sde Dov is a tough blow that hurt Arkia, and the workers understand that they have to make adjustments so that the company will be able to get through it," Avi Edri, chairman of the Transportation Workers Union, told Globes.

The airline has already ended long-haul operations, with a 2x weekly route between Tel Aviv Ben Gurion and Bangkok Suvarnabhumi it inaugurated in July 2018 ending in October 2019. Two 1x weekly routes to India, to Kochi Int'l and Goa Dabolim, are new additions to the network, operated with A321-200neo aircraft.

The Arkia fleet consists of three A321-200NX(LR)s, one E190, and three E195s, according to the ch-aviation fleets advanced module, although Arkia chief executive Nir Dagan told ch-aviation in early July that it may replace the Embraer regional jets with more A320 Family aircraft.

Its single B757-300 is currently inactive, and ch-aviation schedules data shows it is no longer scheduled on Arkia's scheduled services. However, Dagan has confirmed to ch-aviation that the aircraft has not yet been permanently withdrawn from service. Arkia has suspended the purchase of two A330-900s it committed to in 2016. But it is awaiting delivery of a 338-seater A330-800neo leased from Montrose Global.