As the CEO of Hungarian low-cost airline Wizz Air visits Israel, "Globes" has learned that the company has decided to step back from its plan to set up a hub here.
In talks between Wizz Air and government officials, the company's management expressed concern that the number of turnarounds its planes can make at Ben Gurion Airport will be fewer than planned, rendering the economic model it developed for operating flights between Israel and Europe irrelevant.
In addition, as reported by "Globes", the company seeks to exercise the seventh freedom of the air, the right to fly between two countries without stopping in the airline's home country. Wizz Air, which is registered in Hungary, sought to operate flights from Israel to Europe, and there is no problem with that.
The problems started when the airline realized that these flights would not be sufficient for it, and sought to operate flights from Israel to countries outside the EU, in the Balkans, and later on to the UAE as well.
Israeli officials are divided on this demand. It will have a significant negative impact on the Israeli airlines, since Wizz Air will, in effect, be able to operate like an Israeli airline but without Israeli regulation that mandates security arrangements, collective labor agreements, and so on.
Wizz Air hub in Israel: Regev seeks lower fares, Eilat push
Ministry of Transport director general Moshe Ben-Zaken pressed the airline to set up its hub at Eilat's Ramon Airport rather than at Ben Gurion, which could have dramatically boosted tourism to the area and provided employment. Still, Wizz Air did not respond positively to the request.
At any rate, Wizz Air's CEO's visit to Israel is intended to bridge gaps, but more keep emerging.
Israel is very keen to see the plan for a Wizz Air hub in the country succeed. Minister of Transport Miri Regev is personally involved, and it could be a significant achievement for her if it results in lower fares.