(Update)In a dramatic about face, Arkia announced on July 4th that it would not lay off employees and would find other ways of restructuring. The new announcement came only two days after the initial announcement in which Arkia announced major cutbacks. As a result of Tel Aviv’s Sde Dov airport closing, Arkia will lay off 250 of its 650 workers. It will sell almost half its aircraft and plans to cancel its order for two Airbus 330s. Arkia Chairman of the Board Aviv Nakash stated that with the closure of Sde Dov Arkia will no longer be profitable if it maintains its current full fleet. The company will now concentrate almost exclusively on its flights to Europe. It is expected that Israir will likely take similar action, as more people decide to either drive to Eilat, or fly to less expensive destinations in Europe.