The growing tension between Israel and the Palestinian authority, and the ensuing security alert in the region, has had a major impact on airlines operating to Tel Aviv.
The unstable situation has seen a sharp decrease in airline passenger traffic to and from Israel, and some Israeli airlines have begun laying off employees. According to industry sources, passenger traffic has fallen by 50% since the clashes began more than a month ago. Two airlines have modified flight frequencies to cater for the new situation and others may follow soon.
Air France was the first airline to cut frequencies, dropping one of its two daily flights between Paris and Tel Aviv. Continental Airlines has followed by announcing that it will operate only one daily flight between New York and Tel Aviv from 17 November, instead of the existing two.
Israeli national carrier El Al has already decided to lay off 500 seasonal employees (mainly cabin crews) and says that more lay-offs may be needed if the situation does not change. Arkia, Israel's largest private airline, has also laid off 150 seasonal workers and decided to restructure its workforce in line with the decrease in international and domestic traffic. According to the airline's president, Israel Borovitch, this could affect up to 20% of the airline's employees.
Meanwhile, small private airline Israir is to add a Boeing 737-800 on lease from Transavia after its two 737-700s are returned this month to leasing company Pembroke. The 737-800 will be used during its winter season, until a decision is taken on the acquisition of a new 180-200-seat type for its 2001 summer operations.
Israir is evaluating the Airbus 320, and 737-400 and -800 but is already in discussions for the acquisition of the former type. With help from Airbus Industrie, negotiations are underway for the lease of two A320s currently operated by TAP Air Portugal which will be available by the end of the year. Airbus vice president marketing John Leahy is scheduled to arrive in Israel this week (7 November) to try and finalise the deal.
Source: Flight International
