The airline El Al wants to take over its local competitor Arkia. Rumors have been around for some time, however, a letter of intent to buy outright was sent on Thursday.

In concrete terms, this means that El Al has now committed more than a few words to the planned acquisition of Arkia. The deal is to be paid for in shares, as the shareholders are being offered up to 10 percent of El Al's share capital.

Arkia employees currently own around 30 percent of the company. Their approval or rejection is considered uncertain. Irrespective of this, the deal still has to be registered and approved by the competition authority. El Al emphasizes that Arkia will continue as a subsidiary under its own brand identity.