Hungarian low-cost airline Wizz Air is set to open a hub in Israel next year in a move that will shake up the aviation market and dramatically bring down airfares, Israeli transportation officials said this week.
The initiative, which has been met with fierce resistance from Israeli carriers fearful of losing customers, highlights the resurgence of the Israeli aviation sector.
It also underlines the re-emergence of Tel Aviv as an international travel hub as an ever-increasing number of foreign carriers resume flights to Israel following the 12-day war with Iran in June.
The planned hub would enable the Hungarian company to operate as many as 30 daily flights from Tel Aviv to destinations across Europe by April.
“The Ministry of Transport is leading a strategic move to establish a base of operations for the low-cost airline Wizz in Israel,” an Israeli Transport Ministry spokeswoman said in a statement sent to JNS. “The move is intended to increase competition in the aviation industry, expand the range of destinations, reduce prices and improve service to Israeli citizens.
“This is significant news for the country’s citizens, which will also increase incoming tourism and contribute to the Israeli economy.
“International experience shows that wherever ultra-low-cost companies have expanded their operations, there has been a dramatic positive impact on prices, the volume of flights and the local economy, and this is precisely our goal in Israel as well,” the statement said.
Wizz Air declined to comment.
Israeli travel experts welcomed the move, which has the critical backing of Transport Minister Miri Regev.
The initiative follows nearly two years of high fares during the Gaza war, when Israeli airlines made record profits and were accused of price gouging as international competitors repeatedly suspended service to the Jewish state.
“Just the idea that Wizz Air has decided to open up a hub in Israel next year when we’ve been at war for almost 23 months reinforces how strongly they and the Ministry of Transport should be applauded,” Mark Feldman, CEO of Jerusalem’s Ziontours, told JNS on Wednesday.
“Too often, the aviation industry has difficulty planning in the mid-range, but Wizz Air’s confidence that the war will end, and tourists will return to Israel, puts them in the driver’s seat.”
He added that it was “no surprise” that the Israeli airlines, led by flagship carrier El Al as well as Israir and Arkia, have been opposing such a move as they realize that this competition will drive prices down dramatically.
“When it comes to fruition next year, it will be a major boon for both the Israeli public as well as hundreds of thousands of tourists,” Feldman said.
Shirley Cohen Orkaby, vice president for marketing at Israel’s Eshet Tours, told JNS, “There is no doubt that if Wizz opens a hub here, there will be a significant impact on the Israeli aviation market. The addition of flights will necessarily bring down the price of flights.”
She said that the “right balance” should be found to bring down the cost of airfares for consumers and still safeguard Israeli carriers who kept flying throughout the nearly two-year-long war.
A local hub would also allow Wizz to park some of its planes in Israel overnight, allowing them to take advantage of the first and last airport slots of the day, which are preferred by passengers and had generally been reserved for Israeli airlines, giving the Hungarian company an advantage over rival foreign low-cost carriers.
Hungary is one of Israel’s strongest allies in Europe; the move also highlights the burgeoning bilateral relations between the countries.
