Last year I first wrote about an Israeli airline startup, with some big names behind it (both in terms of deep pockets and aviation experience). I wanted to share an update, as the airline has just put its first flights on sale, so we now have a sense of what we can expect from the airline. I’m both intrigued and a bit confused.
Details of the new airline based at Haifa Airport
Air Haifa is a new airline that’s based at Haifa Airport (HFA), in the north of Israel. Not only is this the first Israeli airline startup since the 1990s, but it’ll also be the first airline to be based in Haifa, which is a useful alternative to flying out of Tel Aviv (TLV), given how busy the airport can get.
There are also some serious people behind the airline, including the former CEO, CCO, and VP of Operations, of EL AL. The biggest shareholder of this new airline is Nir Zuk, founder of Palo Alto Networks.
So, what’s the business plan?
- Air Haifa will operate out of Haifa Airport, year-round to destinations in the Mediterranean and Red Sea; initial destinations will include Eilat (ETM) and Larnaca (LCA)
- Air Haifa will operate a fleet of ATR 72-600 turboprops, in a single cabin layout, with 72 seats in a 2-2 configuration; the first aircraft has already been delivered
- Air Haifa describes its fares as “simple, affordable, and convenient air travel,” as they just include a personal item, and then you have to pay for full size carry-on bags, checked bags, and seat assignments
- Air Haifa has the goal of “bringing economic opportunity to the three million Israelis who live in the north of the country”
- Air Haifa is marketing convenience as a major draw of flying with the airline — “instead of a long drive to the airport and arriving three hours before the flight to wait on lines and at the gate, our passengers will enjoy the convenience of flying internationally from their local airport and getting from their doorstep to onboard the airplane in less than 90 minutes”
- For those curious about the company’s logo, it’s a pine cone, which are common in the region where the airline is based
So, with Air Haifa now selling tickets, what’s pricing looking like? Air Haifa will launch flights to Eilat as of October 13, 2024, and to Larnaca as of October 14, 2024. Fares are very reasonable, and start at just $64 one-way. Fares include a personal item, plus free flight changes.
Then you’ll pay extra for hand baggage, checked baggage, and seat selection. For example, seat assignments start at $2, while checked bags start at $30.
This is certainly a unique airline startup…
In so many parts of the world we see airline startups basically replicating one another, and not bringing much to the table. So in that sense, Air Haifa deserves a lot of credit, as it’s not your conventional airline startup.
Currently, Haifa Airport only sees a very limited amount of seasonal airline traffic, and it’s otherwise a general aviation airport. So having an extensive network out of a convenient airport is good for consumers.
The challenge with Haifa Airport is that the runway is only 4,324 feet long. This means that in its current form, the airport can only accommodate turboprops. That also explains why Air Haifa doesn’t have plans to fly any jets.
On the surface, launching an airline with planes that don’t have great per-seat operating costs may seem counterintuitive. But I think what the airline is doing makes sense — it has access to a huge market, and hopes to offer the combination of convenience and good value. In the long run, don’t expect Ryanair or Wizz Air pricing here, though.
The general challenge, in my opinion, is that it seems like there are only so many markets the airline can fly to. The ATR 72-600 has a maximum range of around 850 miles. Of course you also need fuel reserves, and that doesn’t factor in headwinds, plus Israeli airlines having to avoid a lot of airspace.
For example, below is a map showing a range of 750 miles from Haifa, which is probably realistically as far as the airline can fly, and even that might be pushing it.
I can’t help but wonder how many markets this realistically leaves, especially on a year-round basis. I know the focus is on the Mediterranean and Red Sea, so will the airline just fly primarily to Greece and Cyprus, or…?
It’ll be interesting to see how this project develops. There are plans for Haifa Airport to eventually be expanded, with a longer runway. So I suppose Air Haifa is playing the long game here, and recognizes that this is a region with a sizable population, so there’s a lot of growth potential.
Bottom line
Air Haifa is an airline startup that’s based at Israel’s Haifa Airport. The airline will shortly be launching operations, initially flying to Eilat and Larnaca. It’s interesting to see an airline flying turboprops in this way, since that’s not exactly ideal in terms of low per-seat operating costs, plus potential range. Then again, there’s not much of an option here, given the length of the runway in Haifa.
What’s your take on Air Haifa?
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