A change in the bilateral air agreement between Russia and Israel has ended the monopoly of scheduled carriers on this lucrative route opening it for the first time to charter flights. The deregulatory move will generate increased competition on the popular route which is expected to result in a significant increase in traffic and a fall in air fares.
Currently just two carriers are permitted to operate services between Moscow and Tel-Aviv - El Al and Moscow-based Transaero. The two airlines applied heavy pressure on their governments to maintain the status quo when the plans emerged to open the route to charter flights.
According to the amended agreement, two charter airlines from each country will now be allowed to operate on the route. Russian carriers Aeroflot and Rossiya Airlines will begin charter flights between Moscow and Tel Aviv at the end of September, while Israeli carriers Israir and Arkia will introduce charters in the other direction.
El Al operates six weekly flights on the route and Transaero up to 14. The average ticket price is around $500. Avner Yarkony, director general of the Israeli civil aviation authority, expects prices to fall to around $350, and traffic will increase by 50%.
Source: Flight International
