Israeli airline Arkia is changing direction. Last week the airline underwent a rebranding, at a cost of $1.6 million, with the goal of positioning itself as the country's go-to vacation company, which in addition to airplane tickets will offer customers holiday packages with hotels, transportation, access to various attractions and venues, travel recommendations and more. The rebranding places the company in the Joy & Fun Airline category. Accordingly, Arkia, which was acquired by Nakash Group in 2006, has adopted a more colorful logo and catchy new slogan. The rebranding process will be accompanied by a television, newspaper and billboard advertising campaign, which is costing the company NIS 3.5 million ($970,000). According to Arkia CEO Nir Dagan, the rebranding includes increasing the airline's current fleet of eight planes to 12. In a festive launch ceremony in Rome, Italy, last week, Dagan announced that the company had purchased four latest generation A321neo aircraft, manufactured by Airbus. The planes, slated to replace the company's aging fleet of Boeing 757s, are expected to begin arriving in Israel at the end of next year. Additionally, Arkia will operate six Embraer E195 jets. "Nakash Group also purchased two wide-bodied, long-range Airbus A330neo airliners, and an option for two more," said Dagan. "At this stage they are still not earmarked for Arkia, but we certainly want them to come to us," he said. Arkia, according to its new business approach, will fly customers directly to their vacation destinations and not to main airports. Recently, the company also added 15 new locations to its list of international destinations. One million of Arkia's 1.7 million annual customers fly to the southern resort city of Eilat. The company, which last year decommissioned its ATR turboprop aircraft -- that had become synonymous with its Eilat route -- will offer those customers jet planes equipped with entertainment systems and internet. Oz Berlowitz, CEO of Arkia International, said the company is solidifying itself as a hybrid, "mid-cost" niche company that flies to locations that other Israeli companies do not." A flight to the Italian island of Sardinia, for example, costs $450, while the vacation package comes at a price of $700 to $800.
