Wizz Air plans over 200 weekly flights from Israel hub

Such a struggle has not been seen in the Israeli aviation industry for years. Hungarian low-cost carrier Wizz Air wants to set up a hub of operations at Ben Gurion airport, while Israeli airlines, seeking to protect their home market, have launched a campaign to scupper any such deal, and the regulators are divided. Now, senior Wizz Air executives are on their way to Israel for a series of meetings, with plans for the proposed hub hanging the balance. If this revolutionary change moves ahead, the consequences could be aggressive competition that would expand the map of destinations available to and from Tel Aviv and lead to lower airfares.

“Globes’ has learned that if such a hub is established, Wizz Air will increase its operations in Israel. Estimates are that this would be to about 60 daily takeoffs and landings. This means 30 daily flights and over 200 weekly flights. This is almost as many flights as Arkia, about 50% as many as Israir and about 25% of the number of flights operated by El Al.

The regulator required to decide on the issue is the Ministry of Transport, which itself has an internal dispute on the matter. Minister of Transport Miri Regev is eager to set up the hub and take the credit. She and the senior officials in her ministry are supporting and promoting the move. However, the Civil Aviation Authority, headed by Shmuel Zakay, which is subordinate to the ministry, believes that before establishing such a base, uniform rules should be put in place for such hubs for Israeli and foreign airlines, rather than allowing Wizz Air to set its own terms.

Previous discussions have broken down

“Globes” has learned that discussions have been held on the issue by the Ministry of Transport recently, some of which have broken down in mutual accusations between the parties. Israeli airlines are working to block the initiative that Regev supports, and even warn it would cause “the collapse of Israeli aviation.” In contrast to the Civil aviation Authority’s opposition, the ministry’s top officials support the move. Or Libis, senior deputy director general for economics, budgets and strategy, is in charge of the negotiations with Wizz Air.

The discussions come as Israelis are being forced to pay far higher fares than in the past. This has been due to the war and the wave of cancelations by foreign airlines that have left passengers relying on Israeli airlines.

Despite the exceptional circumstances that have arisen, there is no policy of controlling fares. The Ministry of Economy and Industry tried to flex its muscles and reprimanded Israeli airlines but in practice no regulatory tool was activated that would limit prices. Israeli companies took voluntary steps such as operating flights at a uniform price to several destinations that functioned as transport hubs, but overall no major change was felt. High demand for tickets pushed fares upwards to levels not seen as Israeli airlines have broken records for revenue and profitability.

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The most effective tool for cutting fares is not only additional flights but also the addition of foreign airlines that will make up for the foreign airlines still staying away from Israel since the outbreak of the war. The Ministry of Transport sees a Wizz Air hub in Israel as a potential step to promote the return of foreign airlines that would be reassured by a vote of confidence in Israel by a major European carrier.

The entry of an ultra-low-cost company that is known for operating efficiently and defying competition could make a difference. Likewise, competition is important for Israeli airlines to improve their product in terms of both price and quality.

Possible models According to estimates by industry experts, if Wizz Air establishes a hub in Israel, it will be an operational base. This means that the company will continue to operate under Wizz Air’s Hungarian license. In this scenario, the company owns aircraft and crew that operate under the same European Aviation Operating License (AOC) as Wizz Air Hungary. It can also employ Israeli flight attendants and crew, but they will have to meet Hungarian standards. Flights from Israel will only be able to take off to Europe. Wizz Air has many operational bases around Europe, including in Poland, Romania, Greece, Italy, Cyprus, Bulgaria, and more.

The second possible scenario is an independent base. For this, an Israeli subsidiary with a local operating license (AOC) would need to be established, such as the one Wizz Air had in Abu Dhabi but was recently closed, or like the Wizz Air base in the UK that is still active. The company will be considered Israeli and will have to meet the requirements of Israel’s Civil Aviation Authority and regulations. In such a situation, it will be able to operate both domestic flights and flights to destinations outside Europe without changing regulations.

This is a common business mechanism in the aviation world, which allows large companies to expand into new markets without being restricted by the Chicago Convention, which defines international aviation rules and bilateral agreements.

Foreign airlines, local crews

In the low-cost airline industry, establishing multiple operational bases is a common strategy, which allows for local staffing, simple maintenance, and flexibility in operating short, low-cost routes. In contrast, establishing an independent base with a local license requires a more complex regulatory process, but allows the company to be considered local and benefit from agreements and conditions that are usually limited to companies registered in the country.

According to industry sources, the possibility of opening Israel as a hub for foreign companies has not only been offered to Wizz Air but also to rival low-cost companies, but the Hungarian carrier was the only one to express interest. If it does establish a hub in Israel, these are the conditions of the agreement: employing crews that are mostly composed of Israelis, a commitment to fly to Israel even in times of war, regular flights from Ben Gurion Airport to Eilat, establishing an operating hub at Eilat’s Ramon Airport, and flights to popular destinations in short supply, such as Bangkok and New York. Wizz Air, which does not have suitable aircraft in its fleet, and would be required to lease aircraft that can fly to long-haul destinations. In addition, Wizz Air wants to operate all of its flights from Terminal 1, where operating costs and taxes are lower. Such a move could exacerbate the damage to competition with Israelis, as Israir and Arkia have sought to increase the scope of their operations there in order to reduce fees.

Claims of massive pressure against the move

According to industry sources, Israeli airlines are operating massive pressure to block the move. El Al, Israir and Arkia shave ent letters to government officials asking to stop the process. A letter sent by El Al described the move as a “dangerous precedent” that could push Israeli companies over the edge and even damage the economy. A letter sent by Arkia to the prime minister, mnister of transport and minister of finance said, “The proposal will lead to the elimination of Israeli aviation and with it a halt to air links to Israel in times of emergency.”

Meanwhile, a meeting held at the beginning of the week between the El Al board and the Minister of Transport broke down within minutes, after Regev made it clear that she had no plans to stop the move. The board reportedly warned that they intended to take steps against the move and threatened disruptions until it is suspended. The El Al board say “There is no one to talk to” and that no real research has been conducted on the ramifications of the move. Ministry of Transport officials have received angry phone calls and letters, claiming that this is the “end of Israeli aviation.”

Israeli airlines’ greatest fear is of creating a precedent that will lead to other foreign companies pursuing a similar model. These are companies with big fleets of aircraft and resources that local companies would have difficulty competing with.

In competition itself, Israeli airlines have two main limitations compared with foreign airlines. The first is security: not only security costs, which are higher than is customary for foreign companies, but mainly flexibility. If Wizz Air asks to fly from Israel and receives a slot, it will fly. If three Israeli companies want to simultaneously operate flights to, for example, Budapest, and the security apparatus does not have the capacity to operate three flights together, one or two of the companies will not fly. This is a limitation that does not exist for foreign companies.

The second limitation is payments and fees. Israeli companies pay fees at Ben Gurion Airport that are 20%-30% higher than foreign airlines. There is also the higher cost of Israeli pilots who also perform reserve duties, compared with employing European pilots.

Another argument against the move is the arrangements during emergency situations, as has occurred since the start of the war. Foreign airlines have halted Israel flights, while Israeli airlines have been almost the only carriers that have flown continuously. If Wizz Air chooses to establish an operations hub, it will still be subject to EASA (EU Aviation Authority) guidelines, which can decide to which countries it is allowed to fly.

Supporters of the move believe that to create operational continuity even in times of emergency, the company should hire Israeli crews. Once the planes are permanently in Israel, the company will also have an incentive to continue operating and not divert planes to other destinations, as has happened during the war. Wizz Air executives claim that the benefit to the local economy would be significant – an addition of $800 million to $2 billion annually in GDP terms. Industry sources also estimate that the move would lead to an increase in flights to Eilat’s Ramon Airport and not just Ben Gurion airport.

Compromise proposals

The Civil Aviation Authority has proposed compromises that would allow the establishment of the hub without harming fair competition between airlines. These include setting up the hub at Ramon airport, as in most of Europe, where low-cost hubs are opened at secondary airports, or establish an independent company in Israel, like the one that operated in Abu Dhabi. In such a case, there is no reason for Israeli companies to object. Wizzair is reportedly not interested in either of these options.

The issue of the Wizz Air hub in Israel is being compared with the EU Open Skies reform, which transformed Israeli aviation and drastically reduced fares. At that time, Israeli companies were compensated in the form of security assistance and a commitment that foreign airlines would not be allowed to open hubs in Israel. The decision will likely be in the hands of Miri Regev, who will be aware that elections are due next year, while facing heavy pressure to protect Israeli airlines.

Published by Globes, Israel business news – en.globes.co.il – on August 21, 2025.

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