By: Carl Schwartzbaum

A deep rift has emerged within Israel’s Ministry of Transport over whether to allow Hungarian low-cost airline Wizz Air to establish a base of operations at Ben Gurion Airport, a move that could reshape the country’s aviation sector. According to a report at Globes.co.il, the dispute has placed two competing visions in direct opposition — one prioritizing lower airfares and expanded consumer choice, and the other seeking to safeguard the interests of Israeli carriers.

In May, Transport Minister Miri Regev announced plans to advance the opening of a foreign airline hub at Ben Gurion Airport. The proposed arrangement would permit Wizz Air to base aircraft and crews in Israel, enabling it to operate flights starting and ending at Ben Gurion rather than limiting its presence to round-trip services.

As Globes.co.il reported, this status would grant Wizz Air access to highly coveted takeoff and landing slots — especially early morning and late evening windows currently dominated by Israeli carriers whose fleets are already stationed in the country. With a hub in place, Wizz Air could dramatically increase the number of daily flights it offers, solidifying its presence in the local market.

Israeli airlines currently enjoy a structural advantage: because their aircraft are based domestically, they can reliably secure the first and last flight slots of the day, which passengers prefer for business and leisure travel. However, the report at Globes.co.il noted that these carriers are also bound by strict wage agreements, security protocols, and coordination obligations — including working with El Al, which handles aviation security for all Israeli operators.

Industry insiders say Wizz Air has no incentive to register as an Israeli company, a step that would subject it to the same regulations and costs. The airline has reportedly rejected suggestions to base operations at Ramon Airport near Eilat, insisting instead on Ben Gurion as its hub location.

The Civil Aviation Authority (CAA), led by Shmuel Zakay, is firmly against the plan. Globes.co.il reports that Zakay believes allowing a foreign airline to operate a hub in Israel without bearing the same costs as local carriers would create unfair competition. He argued that such a precedent would undermine the viability of existing Israeli airlines, discourage new domestic ventures, and potentially destabilize the market during downturns in air travel.

Zakay has proposed an alternative: Wizz Air could establish an Israeli subsidiary, similar to arrangements adopted by EasyJet in Austria and Switzerland, and by Wizz Air itself in Abu Dhabi. This, he contends, would level the playing field. He also warns that once one foreign airline is granted hub status, denying similar requests from others would be politically and legally difficult, potentially overwhelming Ben Gurion Airport’s already limited infrastructure.

By contrast, the Ministry’s economic affairs division supports the Wizz Air proposal, viewing it as an opportunity to inject more competition into the market, reduce fares, and improve service standards. According to the report at Globes.co.il, the division draws parallels to the 2013 Open Skies agreement with the European Union, which initially drew dire predictions from Israeli airlines but ultimately pushed them toward greater efficiency.

The division dismisses concerns over Ben Gurion’s capacity, noting that slots previously held by Turkish carriers have been freed up since the outbreak of the current security crisis. They also point out that Israeli airlines’ security expenses are already heavily subsidized by the state and that a segment of the market will always prefer Israeli carriers for cultural, religious, and security reasons.

The Israel Airports Authority (IAA) has adopted a more cautious stance, acknowledging both the potential benefits and risks. As the report at Globes.co.il outlined, the IAA fears that reliance on a foreign carrier for significant portions of Israel’s air traffic could create vulnerabilities in times of crisis. The Authority recommends forming an inter-ministerial team, supported by an international aviation consultant, to conduct a comprehensive risk assessment before any decision is made.

One notable point of contention is Wizz Air’s refusal to consider Ramon Airport as a hub location. As the report at Globes.co.il highlighted, Ramon, located near Eilat, has been underutilized since its opening and has struggled to attract sustained international traffic. Israeli officials had hoped that a foreign airline base there could stimulate the southern tourism sector, but Wizz Air has made clear that only Ben Gurion fits its operational and commercial needs.

Minister Regev faces a politically sensitive decision. On one side, the public is likely to welcome any development that promises cheaper flights, particularly given the sharp rise in travel costs over recent years. On the other, Israeli airlines and their influential workers’ committees are lobbying heavily to block the move. The report at Globes.co.il noted that with elections expected within the next year, the minister’s choice will be closely scrutinized and could carry significant political ramifications.

The debate has also touched on international precedents. The CAA points to foreign subsidiaries as a proven model for balancing competition with regulatory fairness. The economic affairs division counters that such arrangements often stem from unique political or legal circumstances — such as Brexit or government ownership stakes — and are not directly applicable to Israel’s situation.

At the core of the dispute, as Globes.co.il reported, is the question of whether Israeli passengers should bear the costs of protecting local airlines from foreign competition or whether the market should be opened more fully to international carriers, regardless of the potential impact on domestic operators.

A Wizz Air delegation is expected in Israel in the coming weeks, signaling that the decision point is approaching rapidly. The Ministry of Transport has publicly stated that it will weigh all professional and economic factors, including the implications for fares, competition, and the long-term stability of Israeli aviation.

As the report at Globes.co.il underscored, whatever choice is made will reverberate far beyond Ben Gurion’s runways. Allowing Wizz Air to establish a hub could bring immediate benefits to travelers in the form of lower prices and more options but could also trigger structural shifts in Israel’s aviation landscape that prove difficult to reverse.