On August 13, 2025, El Al sent a formal letter to Prime Minister Benjamin Netanyahu and Transport Minister Miri Regev, warning that a plan to let Wizz Air set up a permanent base at Ben Gurion Airport is “an extreme step” and “a dangerous precedent.” The Transport Ministry is weighing whether to approve the base — a move that could cut fares and expand routes but, El Al argues, would tilt the field against Israeli airlines and raise security risks. A final decision is expected soon, with the debate drawing in airlines, regulators, and a public eager for cheaper tickets.
Policy stakes and recent moves
El Al’s leadership told the government that allowing a foreign low-cost carrier to base crews and aircraft in Israel would “hurt Israeli aviation” and create “competitive inequality.” The company says Israeli carriers shoulder heavier costs and duties, including strict security rules and a legal duty to keep flying in emergencies, while foreign carriers often pause service during crises.
El Al links the base plan to national resilience, calling Israeli airlines an “air bridge” when borders tighten and the country needs steady lift.
Wizz Air, the Budapest-based ultra-low-cost carrier, wants to station crews at Ben Gurion and expand rapidly. Plans under review include:
- More international routes.
- Possible domestic flights such as Tel Aviv–Eilat.
- New destinations under exploration, including Morocco and India.
Wizz Air’s CEO, József Váradi, is due in Israel next month to advance talks. Industry watchers say Wizz Air could use a local-subsidiary model — think “Wizz Air Israel” — similar to structures it runs in Abu Dhabi, Malta, and the UK, to meet Israeli rules and operate both domestic and international services.
Transport Minister Miri Regev has publicly praised tougher competition and lower prices and met Váradi in Budapest earlier this year. The ministry now faces a tight balance: protect Israeli airlines and national needs, or open the door to a deeper low-cost presence that could push prices down for families and small businesses.
According to analysis by VisaVerge.com, the policy choice often comes down to whether the price relief for travelers outweighs the stress on local carriers that carry security and emergency duties.
Market impact — figures and trends
The market is already shifting. Key data for Q1 2025:
- El Al and its charter arm Sundor: 44.1% of passengers (down from 62% a year earlier).
- Wizz Air: 6.6% share, 237,700 passengers — up 652% year over year.
- Israir: 9.9%.
- Arkia: 7.7%.
El Al’s financials (Q1 2025 and FY 2024):
- Q1 2025 revenue: $774 million (up 5% yoy).
- Q1 2025 net profit: $96 million (up 19% yoy).
- Full-year 2024 revenue: $3.4 billion.
- Full-year 2024 net profit: $545 million.
Despite strong headline numbers, El Al warns that a new base at Ben Gurion could cut yields and force cutbacks.
Airport capacity and slot pressures
Ben Gurion is running short on slots. El Al argues that giving a foreign airline a base would further squeeze access for Israeli carriers due to capacity limits and international slot rules.
Potential consequences of slot shortages:
- Longer waits for approvals.
- Fewer peak-time departures.
- Tougher growth prospects for local airlines even if headline capacity rises.
Four main effects policymakers are tracking
- For travelers:
- Potential lower fares and more route options, including domestic links and new long routes.
- For Israeli carriers:
- Eroded margins for El Al, Arkia, and Israir due to lower prices while they retain higher security and crisis-related costs.
- For national security:
- Israeli airlines have obligations to fly during emergencies and meet high security standards; foreign carriers may not match that reliability.
- For Ben Gurion operations:
- A major new base could worsen slot scarcity and push delays for all airlines.
The Transport Ministry has not set a public deadline, but industry sources expect a decision within weeks. The outcome will likely set a precedent for whether other foreign airlines can base in Israel in the future.
Regulatory steps under consideration
Regulators are working through three main steps:
- Continued talks among Wizz Air, the ministry, and industry players to define structure and rules.
- Minister Regev issues a final decision that could:
- Allow a foreign base; and
- Require a local subsidiary to meet Israeli law, if needed.
- If approved, Wizz Air would hire locally, station aircraft, and add routes as slots and staffing permit.
Public pressure and industry responses
Consumer groups press for lower prices after a long period of high fares and tight supply. Many families postponed trips or paid more during times when foreign carriers reduced flights.
Supporters of a Wizz base argue:
- It would inject fresh capacity.
- Bring more choices.
- Keep prices in check.
El Al and other Israeli airlines counter that their higher costs are tied to Israel’s security model, and reducing their market share too far could weaken the country’s ability to maintain an air bridge in tense periods.
Possible scenarios and timeline
Two broad paths lie ahead:
- If the base is approved:
- A new round of fare wars, faster route restoration, and a market reshaping over 1–2 years.
- Other foreign airlines might pursue their own bases.
- If the plan is blocked:
- El Al, Arkia, and Israir would retain more market share, but pressure for more open skies would persist from travelers and trade partners.
A new Israeli entrant, TUS IL, is slated to launch in 2026, which could add capacity and competitive pressure regardless of the Wizz decision.
Operational reality at Ben Gurion
Even with approval, aircraft basing and route growth depend on securing peak-time slots. Airlines may have to make trade-offs such as:
- Shifting schedules.
- Adding off-peak services.
Local carriers warn that, in practice, a new base could limit their growth even if headline capacity increases.
Where to follow official updates
For official updates on aviation policy and slot rules, see the Ministry of Transport and Road Safety: https://www.gov.il/en/departments/ministry_of_transport_and_road_safety. Watch for a notice once Minister Regev signs the final decision. VisaVerge.com also tracks policy changes affecting cross-border travel and airline access.
El Al, Wizz Air, and the ministry did not release new statements beyond the August 13 letter and recent meeting notes. Wizz Air’s planned CEO visit next month is expected to focus on local structure, route priorities, and timing. If a local subsidiary is formed, it would mirror Wizz Air’s models elsewhere to meet ownership and control rules while tapping local crews and regulatory frameworks.
The central question before Minister Regev: Will Israel permit a foreign low-cost base on its home turf? The answer will shape fares, route maps, and the role of Israeli airlines in future crises — and set the tone for how the country balances open competition with the duties it places on its own carriers.
This Article in a Nutshell
El Al’s August 13 letter to Prime Minister Netanyahu warned a Wizz Air base at Ben Gurion would harm Israeli carriers, raise security concerns, and reshape fares as regulators weigh a decision expected within weeks amid rapidly shifting market shares.
