Israir set to become third Israeli carrier serving New York route, with lower airfare
Israeli airline seeks approval from US authorities to operate long-haul service after rival Arkia launched its first US flights last month, challenging El Al’s monopoly on route
Sharon Wrobel is a tech reporter for The Times of Israel.
Israir is gearing up to become the third Israeli airline to offer nonstop flights between Tel Aviv and New York, bringing more competition into the mix against flagship carrier El Al, and triggering a reduction in airfares seen as exorbitant.
Israir confirmed that it has filed a request for a foreign air carrier permit with the US Transportation Department (DOT) to operate the long-haul service to the US. The move comes after local rival Arkia debuted flights to New York last month, breaking an effective monopoly held by flagship carrier El Al. US carriers have been shunning Israel due to the 16-month war with the Hamas terror group and the unstable security situation.
Israir seeks to launch as many as six weekly nonstop roundtrip flights between Tel Aviv’s Ben Gurion International Airport and New York as early as this summer. However, the smaller Israeli carrier has not yet specified any details about the plans.
“It’s a pity it didn’t happen six months ago and that it took so long for them to understand the importance of this route, especially for the Israeli-based consumer,” Mark Feldman, CEO of Ziontours Jerusalem told The Times of Israel. “As long as the situation remains unstable in our part of the world, they [Arkia and Israir] will benefit, and Israelis can fly nonstop to New York knowing that the odds are very good that Israeli airlines won’t cancel any services.”
“The bottom line is that increased competition will lead to lower ticket prices for the consumer, and that is needed,” Feldman commented.
For most of the past year, El Al has benefited from a monopoly status on the Tel Aviv to New York route since US carriers have been staying away due to security concerns. The lack of competition has led to a severe shortage of seat availability and driven up ticket prices.
In early February, Arkia launched direct roundtrip flights from Tel Aviv to New York, marking the Israeli airline’s first time flying to the US. Originally, the carrier planned to operate the route for a period of three months starting February 8. At the end of last month, Arkia announced that it is extending the operation of its new route to New York until at least October.
The Israeli carrier operates three weekly flights from Tel Aviv’s Ben Gurion Airport to New York’s John F. Kennedy Airport that take off on Saturday nights just before midnight and at noon on Mondays and Wednesdays.
Airfares to and from Israel have more than doubled at times during the war that broke out on October 7, 2023, with the Hamas massacre in southern Israel. Excess demand and a shortage of service resulted as foreign carriers repeatedly canceled and resumed flights to and from Israel amid rocket and drone attacks from Iran, Lebanon, Gaza, Yemen and Iraq. A gradual reduction in tensions and the recently implemented fragile ceasefire between Israel and Hamas have prompted a number of major foreign airlines to announce a resumption of their services to the country.
Among US carriers, United Airlines is set to resume its flight services to Israel on March 15, and Delta Air Lines is scheduled to restart its Tel Aviv-New York route on April 1. American Airlines has not yet announced a return of its Israel service.
“Arkia and Israir are building up a US route as there is still uncertainty about the security situation, which means that they can take advantage of this lull with not much competition by selling tickets at prices that are dramatically less than El Al,” said Feldman. “We know that when there are comments in the media that Israel is ready to go back into Gaza, US and other foreign carriers may cancel their plans to serve Israel immediately.”
“For the Passover holiday [in April] and in the summer, the savings are huge of about $400 to $600 per person, when booking flights on Arkia versus El Al — but the service is not the same as El Al,” said Feldman.
Nonstop roundtrip flights from Tel Aviv to New York with Arkia currently start at around $1,200 compared with around $1,800 with El Al.
“Since Arkia launched the route, we have seen a high percentage of ultra-Orthodox clientele filling up their planes,” said Feldman. “Arkia is designed for the pure leisure and family market, and there is a need for available and affordable leisure travel to the US, and it fills this niche.”
“It’s an all-economy service, and anybody who wants a better seat, fly premium or business class, will not book Arkia,” he added.
Feldman noted that if Israir would offer premium or business class and try to enter the “big boy club and go after El Al, they have an opportunity to do that.”
In the longer term and with the possibility of a long-lasting ceasefire, both Arkia and Israir will be facing challenges to keep their New York route viable as they compete with US airlines.
“Sooner or later, we will have peace and they will have to fill their planes in both directions,” said Feldman. “The average American tourist that will come to Israel, be it from Chicago, Boston, New York, or Miami, may not book an airline that they have never heard of but go back to United, Delta, or El Al, at least in the short term.”
