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Profitability Of USA-Israel Flights  
User currently offlineAirplanetire From United States of America, joined May 2001, 1809 posts, RR: 2
Posted (8 years 7 months 4 days 3 hours ago) and read 2072 times:

I have heard on these forums that flights between the United States and Israel are quite profitable. Also, in a recent thread about the Israeli government possibly allowing Israir to start flights between TLV and New York, it was mentioned that El Al will probably appeal that decision to the highest court in Israel because the government promised to not allow additional Israeli airlines on this route as part of El Al's privatization. Given that, I would guess that it is profitable. In reality, how profitable are the flights between the United States and Israel, particularly for flights originating in or leaving JFK/EWR? Also, how profitable do you believe Delta's new ATL-TLV-ATL flights or El Al's nonstop TLV-MIA-TLV flights will be? Are there prospects for expanding USA-Israel service, particularly with more cities in the United States? Lastly, who typically flies these flights: religious pilgrims, businesspeople, people visiting family, tourists?

4 replies: All unread, jump to last
 
User currently offlineFXramper From United States of America, joined Dec 2005, 7247 posts, RR: 85
Reply 1, posted (8 years 7 months 4 days 2 hours ago) and read 2028 times:
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CO, EWR-TLV, 2x daily. DO IT!

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User currently offlineAvi From Israel, joined Sep 2001, 942 posts, RR: 6
Reply 2, posted (8 years 7 months 3 days 13 hours ago) and read 1847 times:

Quoting Airplanetire (Thread starter):
Lastly, who typically flies these flights: religious pilgrims, businesspeople, people visiting family, tourists?

All of the above. Tourists are coming back to Israel.

I believe Delta will do very well.



Long live the B747
User currently offlineLaxintl From United States of America, joined May 2000, 25077 posts, RR: 46
Reply 3, posted (8 years 7 months 3 days 11 hours ago) and read 1775 times:

Actually USA-Israel is not the gold mine people think it is.

Sure during the summer season and around holidays flights fill up easily with relative high fares. However during the off season there is plenty of capacity and cheap fares out there making the route marginal at best.

The long distance involved, competition from near every European airline offering one stop service, plus the very extensive presence of tour operators and consolidators in the market make the US-Israel market a quite competitive and price sensitive for the airlines involved.



From the desert to the sea, to all of Southern California
User currently offlineRwSEA From Netherlands, joined Jan 2005, 3092 posts, RR: 2
Reply 4, posted (8 years 7 months 3 days 10 hours ago) and read 1715 times:

I would think these are pretty profitable flights and here is why: CO operates between 12-14 flights a week on the route, which requires probably 3 777's at least. It's no secret that CO is desparately short of widebody capacity, given that they are pulling widebodies off of European flights and replacing them with 752s left and right. If their widebody capacity is that short, conventional wisdom states that they're only going to use the 777s where they make the most money. If they devote up to 3 777's for TLV service, it must be extremely profitable and have high BusinessFirst loads given that the 777 has the most capacity in J class.

I'd be willing to wager that EWR-TLV is a cash cow for CO, and that DL will do well on the route from ATL-TLV, even if it gets off to a slower start. It took CO time to nurture the route and it is now a success.


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