In recent years, we’ve seen EL AL report record profits, and the company is even facing a class action lawsuit, and is being accused of wartime price gouging. EL AL’s ticket prices have been through the roof, so a new competitor wants to enter the market, and establish a base there.
Competition is typically good for consumers, though EL AL is trying to block this initiative, with some pretty questionable logic, if you ask me.
In this post:
EL AL lobbies Israeli government to block Wizz Air
Hungarian ultra low cost carrier Wizz Air wants to set up a base in Tel Aviv, Israel (TLV), to help lower fares there. We know the airline is trying to find new profitable bases out of which to launch operations, and frankly, this seems like a logical enough place to grow.
However, Israeli national carrier EL AL is trying to block this growth, with CEO Dina Ben Tal Ganancia sending a letter to Israeli authorities.
The letter argues that the plan to let Wizz Air grow in Tel Aviv “entails a risk of substantial harm to Israeli airlines in particular and to the State of Israel in general,” and that “it could lead to negative consequences for national resilience and the safety of the Israeli public on flights from and to Israel.”
EL AL also argues that Israeli airlines “serve as an air bridge between Israel and the nations of the world and play a vital role in maintaining the State of Israel’s resilience,” and that “this step adds to other measures that hurt Israeli aviation and creates competitive inequality.”
EL AL argues that this could be a “dangerous precedent that leads to granting similar rights to additional foreign airlines, pushing Israeli carriers out of the local market,” and that “while foreign airlines abandoned operations in Israel during times of emergency, Israeli carriers maintained the air bridge to the world.”
Is there merit to EL AL’s complaint about Wizz Air?
There’s simply no denying that Tel Aviv is a market with high fares, and EL AL has really been able to use the current situation to maximize its profitability. For example, in 2024, EL AL saw a 94%(!!!!) average load factor, and revenue per available seat mile increased by 24% year-over-year. That’s a dream situation for an airline to be in.
While it’s normal for all passengers flying from Israel to be subject to extra security screening, EL AL of course takes that to the next level, and the airline has been the only one operating consistently since October 2023. That’s possible for a variety of reasons — EL AL aircraft have missile defense systems, added security onboard, etc. For that matter, since EL AL is based in Israel, the airline doesn’t really have anywhere else it can fly planes.
Let me also emphasize that EL AL doesn’t fly on the Sabbath, so the carrier’s fleet is grounded one day per week. That’s based on religion rather than safety, but it obviously hurts the carrier’s cost structure, since it chooses to ground planes, and has to work its global schedule around that.
Should all of this be a basis for blocking other airlines, though? For example, foreign airlines operate to and from Israel without many of EL AL’s security features, and that’s allowed without too much pushback.
Essentially, EL AL’s argument is that “if you allow too much competition we won’t be able to compete, and if that happens, there’s not an airline that will serve Israel during times of war, and/or with planes that have extra security systems.”
Should Israel’s government be in support of that, or should consumers be allowed to decide what type of airline they prefer? If you ask me, travelers should be able to choose whether they prefer the lowest cost flight possible, or whether they want to pay a premium for what EL AL offers.
Essentially, the question boils down to whether EL AL is an extension of the Israeli government, or a for-profit, publicly traded company.
Bottom line
Wizz Air wants to open a base in Israel, but EL AL is trying to block it. EL AL’s argument boils down to how the airline can’t compete on price due to all the extra security features its planes have, plus its assurance that it will fly even during times of war.
So the concern is that Wizz Air will price tickets in a way where EL AL can’t compete, and in the long term, this could cause major issues for EL AL, threatening Israeli national security, etc.
I’ve gotta say, this is one of the more unusual arguments I’ve seen used to try to stop a competitor. Then again, Israel is a unique country in that regard.
What do you make of EL AL trying to block Wizz Air’s expansion?
Hungary is one of the few countries left that doesn’t consider Isreal a pariah state. Not shocking that they want to enter that market. My moral compass will never fly on either airline.
Even Ben is now posting with a false/alternative login name …. shame.
Nazi hungarians and their pseudo flag carrier! how dare they?, but seriously how can this be news, this blog has gone downhill since the start of the conflict, now everything is about Israel, El Al and the like.
It's still surprising that many europeans wanna visit The Holy Land under these circumstances, and the systematic mistreatment of christians by the state of israel and israeli police. This is not a good time to increase TLV...
Nazi hungarians and their pseudo flag carrier! how dare they?, but seriously how can this be news, this blog has gone downhill since the start of the conflict, now everything is about Israel, El Al and the like.
It's still surprising that many europeans wanna visit The Holy Land under these circumstances, and the systematic mistreatment of christians by the state of israel and israeli police. This is not a good time to increase TLV flights, Israel will see a huge decrease in tourism in the coming years. It seems desperate that they take this approach after their failed attempt in AHU.
Wizz Air is Hamas!
ElAl is Hamas. See my comment, which is a response to Moe.
wIzZz aiRr Is KHHamMaSs!!!
It's too bad that Wizz's seat pitch is worse than Spirit's. Also no option of premium seating. It's a good airline for " little people".
El Al’s manipulative behavior in this saga perfectly exemplifies why immoral, unethical business practices should not only be called out but heavily regulated—if not outright illegal—in Israel and everywhere else. While they shamelessly cry about “competitive inequality” and “national resilience,” they have conveniently ignored their disgraceful track record of exploiting Israeli citizens and international travelers alike. Their wartime price gouging after October 2023 wasn’t just unethical; it crossed the moral line into blatant opportunism, taking...
El Al’s manipulative behavior in this saga perfectly exemplifies why immoral, unethical business practices should not only be called out but heavily regulated—if not outright illegal—in Israel and everywhere else. While they shamelessly cry about “competitive inequality” and “national resilience,” they have conveniently ignored their disgraceful track record of exploiting Israeli citizens and international travelers alike. Their wartime price gouging after October 2023 wasn’t just unethical; it crossed the moral line into blatant opportunism, taking advantage of a vulnerable population during a time of crisis. In many other countries, such predatory behavior would be met with harsh regulatory action and substantial penalties. Yet, in Israel, they face little to no meaningful consequences.
El Al’s argument against Wizz Air entering the market reeks of self-serving hypocrisy. They claim competition will harm Israel’s aviation sector, but the truth is, they don’t want competition because it would expose their inefficiency, monopolistic dominance, and inability to deliver value to customers at fair prices. Let’s not forget: competition exists to protect consumers, not monopolists. If El Al truly believes they represent the gold standard for Israeli aviation, let them prove it in a fair market. Instead, they cling to government interventions and nationalist rhetoric to shield themselves from the very competition that would force them to improve.
What makes this even more egregious is the sheer cynicism behind their claims. By gouging prices during Israel’s most vulnerable moments, they revealed where their priorities lie—corporate greed, not “national resilience.” If El Al were truly invested in national resilience, they wouldn’t have inflicted financial pain on their own citizens to pad their bottom line. Governments should prioritize *consumers* over corporations who exploit their position.
El Al needs to stop disguising unethical, monopolistic practices as patriotism. If their business model can’t survive competition, then perhaps the problem isn’t Wizz Air or the open market—it’s El Al itself. Instead of suppressing competition, Israel should be enacting stronger consumer protection and airline accountability laws to ensure companies like El Al can never exploit their customers in this way again. It’s time for the Israeli government to put an end to El Al’s monopolistic abuses, hold them accountable for their wartime profiteering, and prioritize fairness and transparency in aviation for the benefit of Israeli citizens and travelers.
10000% agree
Agree fully. LY is a 2nd rate, high Fare airline. I recently looked at a flight from TLV to NRT, and LY was thousands more expensive than traveling through Europe. They need competition in the worst way. The govt will never let LY go under regardless. Jdog nailed it. Besides Whizz needs somewhere to base its extra aircraft after shutting down in DXB.
It is not unusual for a long haul nonstop to cost more than a route requiring multiple flights. The airlines are whizzes! at setting these fares.
I am no fan of LY but they have a legit argument. They will fly when inconvenient while others pull out. In fact, the only thought of Wiz to set up here is after they decamped from Dubai.
Israel does allow flights on the Sabbath but will...
It is not unusual for a long haul nonstop to cost more than a route requiring multiple flights. The airlines are whizzes! at setting these fares.
I am no fan of LY but they have a legit argument. They will fly when inconvenient while others pull out. In fact, the only thought of Wiz to set up here is after they decamped from Dubai.
Israel does allow flights on the Sabbath but will not allow an Israeli airline to do so. Allowing Wiz to get the benefits of being based in Israel while avoiding the negatives would be unfair.
well said, spill that hot scalding tea.
For the purpose of this comments section, let’s replace “Israel” with “Russia”. Take away the bias for-against Israel and antisemitism and respond to this as a company protecting its turf. Go…
'Against Israel and antisemitism'. Criticising Israeli politics when it comes to their military interventions and antisemitism are two very very different things. No?
Nah, antisemitism is whatever Bibi and the witless Orange Ape in the White House says it is now
If Israeli government backs up this request, EU should ban Israeli companies from flying to EU....
No one is trying to ban Wizzair from flying to Israel. The conflict is about Wizzair launching a local subsidiary there, something Israeli companies would already be unable to do in the EU, as EU requires majority stake to be controlled by the EU nationals.
Every single airlines tries to protect their home bases. El Al is no different. Lufthansa has done this, United has done this, British Airways, Qantas ... this list goes on and on.
The antisemitic comments are abhorrent, but not unexpected.
LOL, every time anything related to Israel is criticised its automatically antisemitic?
It really gets tiring. Not everything is antisemitic. This is coming from a black person who is also tired of everything labelled as racism, even when the black person is obviously wrong
Your full of Jew hating sh-t.
YOU get a racist, YOU get a racist, EVERYBODY gets a racist.
El Al is just jealous. If El Al offers a good product at a reasonable price, only an idiot would fly Wizz Air.
El Al is required to always provide flights to/from Israel.
El Al is required by religious law to fly 6 days a week, no more.
El Al is unable to set up as a airline based n Europe while WIZ does have that option.
WIZ has tried and failed at other bases and could easily pull the plug on Israel when the going gets tough.
For the above reasons I believe EL Al has a decent argument.
ElAl required to fly to and from Israel. Where else is it going to fly to and from? Teheran? Kabul?
ElAl is not required by law to not fly on Saturday. It's their choice to do so.
ElAl can set up an airline in Europe. Just follow the rules. One rule is a maximum 49% ownership and 51% by local Europeans.
Therefore, ElAl has no case using Moe's reasoning. ElAl should stop acting like Hamas and just recognize Wizz Air's right to exist.
The monopoly was promised to them 2000 years ago
You guys have one joke and it's lame as hell.
Of course they object! When competitors fled Israel after October 7, 2023, El Al immediately jacked up prices to exploit their monopoly position - classic price gouging and war profiteering. Despite operating costs dropping 3%, their profits exploded fivefold to $545 million in 2024, exceeding the company's total cumulative profits from the 15 years preceding the war. El Al is now facing a $600 million lawsuit for 'exploiting an unprecedented national tragedy,' they're invoking 'national...
Of course they object! When competitors fled Israel after October 7, 2023, El Al immediately jacked up prices to exploit their monopoly position - classic price gouging and war profiteering. Despite operating costs dropping 3%, their profits exploded fivefold to $545 million in 2024, exceeding the company's total cumulative profits from the 15 years preceding the war. El Al is now facing a $600 million lawsuit for 'exploiting an unprecedented national tragedy,' they're invoking 'national resilience' to block Wizz Air and preserve their monopolistic grip on Israeli aviation.
We fly to Israel regularly and have no special love for El Al. It's a parasitic organization that wraps itself in the flag to distract from the fact that they provide a mediocre product and charge too much for it
100% I couldn't agree more. El Al's actions after October 7, 2023, went beyond opportunism and crossed into outright exploitation. Capitalizing on a national crisis to inflate profits while hiding behind patriotic rhetoric is both unethical and infuriating. The numbers speak for themselves—profits exploding fivefold while costs decrease only underscores how predatory their approach was. Calling it "national resilience" while suppressing competition like Wizz Air is just another way to cement their monopoly and avoid...
100% I couldn't agree more. El Al's actions after October 7, 2023, went beyond opportunism and crossed into outright exploitation. Capitalizing on a national crisis to inflate profits while hiding behind patriotic rhetoric is both unethical and infuriating. The numbers speak for themselves—profits exploding fivefold while costs decrease only underscores how predatory their approach was. Calling it "national resilience" while suppressing competition like Wizz Air is just another way to cement their monopoly and avoid accountability. It’s hard not to feel frustrated by a company that charges premium prices for a subpar experience while disguising greed as patriotism. You nailed it—they're a parasitic organization cloaked in the flag.
A company trying to use the government to block competition - old story.
This is unlikely to work, given that Israeli transportation minister recently visited Budapest and met Wizz CEO Jozsef Varadi. This means she can take credit for Wizz entering Israel, and no way she'd let political credit go to waste.
And Israel currently badly needs capacity. Flights to/from anywhere in Europe sell great, and there's demand for much more. Wizz can provide...
A company trying to use the government to block competition - old story.
This is unlikely to work, given that Israeli transportation minister recently visited Budapest and met Wizz CEO Jozsef Varadi. This means she can take credit for Wizz entering Israel, and no way she'd let political credit go to waste.
And Israel currently badly needs capacity. Flights to/from anywhere in Europe sell great, and there's demand for much more. Wizz can provide this without hurting Israeli airlines much
I believe the issue here is that Wizz Air wants to open a base without actually complying with Israeli law regarding employee salaries and accomodations. That makes a big difference in their ability to match fares.
As an aside, ELAL has actually kept prices pretty low for non last minute availability.
See here:
https://en.globes.co.il/en/article-regev-set-to-decide-on-wizz-air-israel-hub-1001517972
"Currently, Israeli carriers have a comparative advantage in that their aircraft are based in Israel and can take advantage of the first and last slots of the day, which are preferred by passengers. If Wizz Air were to establish a base in Israel, it would be able to enjoy the same terms, and become a dominant player during peak hours.
While Israeli airlines have an advantage in slot allocation, they are subject...
See here:
https://en.globes.co.il/en/article-regev-set-to-decide-on-wizz-air-israel-hub-1001517972
"Currently, Israeli carriers have a comparative advantage in that their aircraft are based in Israel and can take advantage of the first and last slots of the day, which are preferred by passengers. If Wizz Air were to establish a base in Israel, it would be able to enjoy the same terms, and become a dominant player during peak hours.
While Israeli airlines have an advantage in slot allocation, they are subject to regulations that do not apply to foreign companies, including strict wage agreements and security arrangements and coordinating with El Al, which is also the security services provider. If Wizz Air were to open a hub in Israel and ask to register as an Israeli company, the same regulations will also apply to it. However, industry sources believe there is no obvious reason for Wizz Air to do so. Moreover, during talks with Wizz Air, it became claer that it has no plans to agree to open its hub at Ramon Airport near Eilat, but only at Ben Gurion Airport, and it does not intend setting up an Israeli subsidiary."
El Al already uses Klasjet on a wet lease basis to sidestep many of these same obligations.
I am a big supporter of Israel and have a great deal of respect for her people. That said, stereotypes exist for a reason and here's an example of a Jewish corporation being, shall we say, "unnecessarily frugal". Reminds of that Family Guy episode where Peter converted to Judaism and was bragging that something was $30, but said "I "ussed them down" to like $25, Yeah, that was a real expression back in the day. El Al is definitely acting like that. :-D
This is an incredibly fucked up comment
"...a Jewish corporation being, shall we say, 'unnecessarily frugal'."
And you're being obtuse and too clever by half in trying to dog-whistle "cheap Jews." The readers here aren't dumb, and you're grotesque. Go to some more Trump rallies and stay off the comments sections of blogs.
Trump rallies? Maybe go to some more college campuses, and bathe in the anti-Semitism of the Left. Open your eyes!
Criticizing Israel isn’t anti-semetic.
It's not, but claiming Israel does not have a right to exist or defend itself is anti-semitic. Supporting the terrorists that Israel is fighting instead of Israel itself is also anti-Semitic.
Again with the bullsh*t that supporting Palestinians and their right to exist is somehow anti-semitic…
Also, shouldn’t Palestinians have the right to defend themselves as well?
But, aren't they? They're absolutely reinforcing the stereotype. Which certainly isn't true all of the time, but it hits home often enough (such as this case) that it doesn't go away.
And yes, I'm an ardent supporter of Israel and of the Israelis. And El Al's behaviour (beyond this) as far as pricing is concerns has been ridiculous. No wonder they don't want Wizz Air anywhere near their market.
Oh look, another incredibly fucked up comment
lol
A company trying to use the government to block competition - old story.
This is unlikely to work, given that Israeli transportation minister recently visited Budapest and met Wizz CEO Jozsef Varadi. This means she can take credit for Wizz entering Israel, and no way she'd let political credit go to waste.
And Israel currently badly needs capacity. Flights to/from anywhere in Europe sell great, and there's demand for much more. Wizz can provide...
A company trying to use the government to block competition - old story.
This is unlikely to work, given that Israeli transportation minister recently visited Budapest and met Wizz CEO Jozsef Varadi. This means she can take credit for Wizz entering Israel, and no way she'd let political credit go to waste.
And Israel currently badly needs capacity. Flights to/from anywhere in Europe sell great, and there's demand for much more. Wizz can provide this without hurting Israeli airlines much
There are those who post here who cannot tell the difference between a terrorist, a criminal and an innocent Israeli baby. Uneducated hypocrites, plane and simple just like Jane, etc, will now vent their antisemitic spleens …. lucky, Lucky, more click bait.
Down the hall and to the left
Every online article tangentially related to Israel, Palestine, El Al, Tel Aviv, Gaza, Jewish people, Palestinian people... it eventually turns into a lighting rod for someone to post anti-semitic, or anti-Muslim, hate-filled trash.
But, for the 35,000+ posts on his blog, Lucky's job is to gather information (on topics that interest him as the publisher), share his perspective and literally hope the most people possible will take interest enough to click and read. This isn't...
Every online article tangentially related to Israel, Palestine, El Al, Tel Aviv, Gaza, Jewish people, Palestinian people... it eventually turns into a lighting rod for someone to post anti-semitic, or anti-Muslim, hate-filled trash.
But, for the 35,000+ posts on his blog, Lucky's job is to gather information (on topics that interest him as the publisher), share his perspective and literally hope the most people possible will take interest enough to click and read. This isn't a private journal, it's his form of journalism and an incredible public service to the rest of us.
For those who dislike the trash comments that others make, we have three choices: don't open the comments section, don't click on posts on topics we aren't keen on, or don't come to his blog anymore. I often choose the first two options, but have never thought to resort to the last.
Lucky, why do you not post as who you really are …. Ben?
Son’t forget the innocent Palestinians babies, which many people also overlook.