Israeli operator Israir Group has ended long-running discussions to acquire Czech-based carrier Smartwings.
Israir Group’s pursuit of Smartwings had emerged in 2022, after the Israeli leisure airline’s sale to an investment company.
But while Israir has maintained its interest in the Czech carrier, progress in negotiations has been slow, involving a number of extensions to deadlines.
Israir ended talks with a large Chinese shareholder, CITIC Group, in Smartwings last year, citing the uncertainty in the Middle East arising from the Gaza conflict which had begun a few months earlier.
Smartwings’ Czech shareholders subsequently took over the CITIC stake and resumed talks with Israir.
But Israir says that, on 25 June, the Czech shareholders notified the company of a “change in the terms of the transaction” and an intention to complete it by the end of this year.
“After reviewing the updated terms of the transaction…[Israir’s] board of directors decided to terminate the negotiations for the acquisition of Smartwings,” it says.
Israir Group will continue exploring “alternatives” for expanding and developing its business, it adds.
Smartwings, which has a fleet of around 40 aircraft and several bases, would have given Israir a platform in Europe and potentially an avenue through which to integrate the two airlines’ operations.
