While the $4.2 billion transaction still requires approvals from the Israeli government, it points to an appetite for consolidation among carriers despite the lack of financial distress that accompanied earlier merger eras.
Prices have more than doubled since the war started, and with fuel comprising almost 30% of operating expenses, the Hong Kong-based carrier has been forced to reduce capacity.
The railroads say they plan to file an updated merger application on April 30, addressing many of the complaints that caused regulators to deem their original application “incomplete.”
