Israelair, the Israeli airline, has announced that it has canceled its plans to acquire Czech low-cost carrier Smart Wings. The decision to cancel the deal was due to the refusal of the Chinese company CHINA CITIC, which owns 49.92% of Smart Wings’ shares. Although negotiations were at an advanced stage and the Czech owners, who hold 50.08% of the shares, agreed to the sale, their Chinese partners ultimately declined after several months of delays.
This news comes as a surprise to many in the aviation industry, as the deal seemed promising and almost finalized. The cancellation of the acquisition is a setback for Israelair, as it had been working towards expanding its operations and presence in Europe. Additionally, the decision by CHINA CITIC to reject the deal showcases the complexities and challenges of international business negotiations.
Despite the setback with the Smart Wings acquisition, Israelair is still exploring opportunities for growth and expansion in the aviation market. The airline remains focused on providing excellent service to its passengers and maintaining a strong presence in the industry. The cancellation of the deal serves as a learning experience for Israelair as it continues to navigate the complexities of the international business environment.