Budget airline Israir to launch flights between Israel and NY, ending wartime monopoly by flagship carrier El Al

An Israeli low-cost airline is planning to launch flights between Israel and New York this winter, ending the wartime monopoly on the popular route by Israel’s flagship carrier El Al, the Israeli Ministry of Transportation said on Wednesday.

The move, which envisions four weekly flights on Israir from Tel Aviv to Newark Liberty International Airport, comes at a time when flights on U.S. carriers to and from Tel Aviv remain suspended due to the security situation, and as El Al is facing an investigation for price gouging on tickets due to the dearth of available seats.

“Israir is in the advanced stages of leasing wide-body aircraft that will enable, for the first time in the company’s history, the operation of a direct line to New York,” said a Transportation Ministry statement.

Founded in 1989 as a small domestic carrier, Israir, which operates only eight aircraft, will be leasing planes and crews from a foreign airline in order to service the lucrative route to New York, which is generally the most popular flight from Ben-Gurion International Airport near Tel Aviv.

Owned by the Rami Levy Group, best known for its discount supermarket chain, the airline currently services various European destinations as well as domestic flights to the Israeli Red Sea resort city of Eilat.

The launch of the new line to New York on Israir is awaiting U.S. regulatory approval, which Israeli officials are seeking to expedite due to the high demand for seats on the route since U.S. carriers are not flying to and from Tel Aviv because of the war on Israel’s northern and southern fronts.

Both United and American Airlines have suspended flights to Israel indefinitely, while Delta is currently scheduled to resume flights to Tel Aviv only in April. United and Delta had sought to resume flights periodically over the last year, only to suspend service anew following flareups, while American has stayed away entirely.

“Everyone in the industry would be ecstatic if a second Israeli carrier were to fly to New York,” Mark Feldman, Jerusalem Director of Diesenhaus Tours told JNS Wednesday.  “While it sounds like it won’t be an easy path, we applaud their efforts.”

Travelers have faced sky-high prices over the last year on El Al for direct flights across the Atlantic, or alternatively having to travel via connecting flights through Europe.

El Al, which is enjoying record profits due to lack of competition, has been doling out huge bonuses to their executives and pilots, with the latter receiving $67,500 bonuses this year, the Israeli financial daily Globes reported.

Meanwhile, the Transportation Ministry is processing a request by foreign airlines to amend the law requiring them to compensate passengers for canceled flights during the war—before they resume flights to Israel.

The current law requires airlines to provide compensation to passengers for flight cancellations and changes, and, if necessary, find and pay for their alternative flights.

“The Transportation Minister is working to … amend the law so that it will allow for the protection of passengers’ rights as well as reduce the uncertainties for the airlines during wartime,” the Transportation Ministry said.