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Following the increased threat from Iran and Lebanon, Ben Gurion Airport this week switched to a reduced operating format that raises questions about the continuity of Israeli passenger air traffic during the war. The decision to limit the number of passengers to only 50 on each outgoing flight compared with the previous more lenient restrictions that allowed 50% occupancy on wide-body aircraft is making many routes not feasible for airlines to operate.
On the ground, the results are already noticeable. Israeli airlines are handling cancellations of tens of thousands of tickets while passengers are left without clear answers. Amid the uncertainty, airlines must decide on an the order of priorities over destinations and which passengers will be allowed to board the few remaining flights.
Moreover, since outbound flights resumed earlier this month, more than 50,000 Israelis have been able to fly abroad. But although government restrictions dictate that Israelis traveling abroad must commit to remain outside Israel for at least 30 days, in practice
The airlines’ new model
El Al will focus on operating flights to a limited number of major destinations, while diverting activity away from vacation destinations. The list of routes that will be operated includes Tel Aviv to New York, Miami, Los Angeles, London, Paris, Rome and Athens – routes considered essential for business activity and contact with Jewish communities and Israelis abroad. Flights to the East and vacation destinations will not be operated. The company will not open up new ticket sales but will reassign existing passengers according to priority and needs and for humanitarian cases.
Israir plans to continue flights from Ben Gurion Airport according to the Ministry of Transport’s restrictions as well as flights from Taba in Sinai, according to demand.
Arkia, on the other hand, plans to divert most of its activity to Taba and Aqaba in Jordan. In an official statement, Arkia said the current restrictions do not allow for normal operations and that Arkia does not intend to have to choose between passengers who have already purchased tickets – a situation that is not feasible and is not in line with the company’s values.
Arkia CEO Oz Berlowitz said, “With the current restrictions, regular aviation operations cannot be maintained, and its practical meaning is the closure of Israel’s skies.”
To avoid arbitrarily turning passengers away from flights, Arkia decided to transfer most of its operations to the airports in Aqaba and Taba, with the exception of flights to Athens and Larnaca, which will continue to operate from Ben Gurion Airport on a limited basis. Long-haul flights to Bangkok, Hanoi and the US will depart from Aqaba, without occupancy restrictions.
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The heavy price of reducing activity
From the airlines’ perspective, the current restrictions are particularly problematic. Each plane that is grounded incurs high costs: lease, insurance, ongoing maintenance and payment for unused parking and slots. In practice, part of the fleet remains idle, but continues to generate daily expenses.
At the same time, the planes that are operating also do so under uneconomic conditions. The surge in jet fuel prices, along with the restrictions on the number of passengers means planes are taking off partly empty. The result is significantly lower revenue, especially on long-haul routes where operating costs are already high.
Crew management is also becoming more complex and expensive. Air crews find themselves stranded abroad for longer periods than planned, due to movement restrictions and reduced frequencies, which requires companies to finance accommodation, and other living expenses. Disruption to schedules makes it difficult to plan work arrangements and creates operational inefficiency that translates into additional costs. There is also uncertainty with frequent changes in schedules and guidelines make it difficult for companies to build stable flight schedules, sell tickets in advance, and maintain a regular pricing policy. The result is a double blow, both to revenue and to the ability to control expenses.
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