Wizz Air CEO: Our plan is to establish a base in Israel in April

Wizz Air CEO József Váradi arrived in Israel for a short visit – and at the conclusion of the meeting he held with Transportation Minister Miri Regev and senior officials from the Transportation Ministry, the parties presented for the first time the company’s significant expansion plans in Israel.

According to Váradi, Wizz Air plans to establish a permanent base in Israel as early as April, as part of a large-scale investment plan estimated at around $1B over the next three years. "We understand the potential and opportunity we have in Israel. We also understand the gaps and technical and economic challenges. We are ready to take the next steps to deepen our activity in Israel. Operationally, I believe we will be ready for full operations as early as this coming April."

At the meeting held at the Transportation Ministry and the Civil Aviation Authority, Váradi presented the company’s plan to station ten new aircraft in the country – a move expected to create thousands of jobs in the economy, some of the employees to be absorbed directly by the company. The expansion of activity will lead to a doubling of the number of passengers.

Transportation Minister Miri Regev said after the meeting: “We concluded a very good meeting. We are committed to lowering prices, increasing seat capacity, and improving service. The path to reducing the cost of living goes through increasing competition – but we will do this while protecting Israeli companies and employees. It is no secret that Israeli airlines charged exorbitant prices during the difficult moments of the Israeli company, and this is a reality that cannot be accepted. We have a great interest in turning Ramon into a vibrant and dynamic airport that will serve the citizens of Israel living in the south."

Regev added that the Transportation Ministry will continue to formulate solutions with labor unions and the Histadrut, and that a concluding meeting has been scheduled for the end of January: “The teams will continue to bridge regulatory gaps. The intention is for Wizz to operate in Israel as soon as possible."

Alongside the dialogue regarding operations at Ben Gurion Airport, the possibility of expanding activity to Ramon Airport was also raised. Regev even offered companies significant incentives, almost a full exemption from fees. Váradi himself addressed the issue, saying: “Ben Gurion is our anchor, but we are definitely open to operating in the south as well."

Alongside excitement over Wizz Air’s expansion in Israel, Israeli companies and labor organizations warn of a potential threat to their viability. The main point of contention is that the company will receive slots vacated by foreign carriers that left during the war – which could create an unfair advantage for a foreign company.

The companies note that they are subject to higher regulatory costs: Higher port fees at Terminal 3, expensive safety systems, employing Israeli pilots who perform reserve duty, and a much heavier operational structure than foreign low-cost competitors.

Considering the concerns of Israeli companies, we asked Wizz Air CEO how he responds to claims that the company will have advantages such as slots and aircraft availability.

“We like competition on an equal basis,” Váradi said. “At the moment there is no agreement, so this is a speculative question – we cannot comment because it is only hypothetical."

During security tensions, foreign companies tend to stop flights to Israel. How will establishing a base here affect your decisions during security events?

“We are a European airline and therefore committed to complying with all rules set by the European Aviation Safety Agency (EASA). If we establish a base here, we will receive more detailed security information that will allow us to make more informed decisions, but we will still need to operate according to European regulations,” Váradi explained.

In the face of criticism, the Transportation Ministry is trying to find the balance between increasing competition and leading price reductions – while maintaining the stability of Israeli companies. Today’s meeting was a first step in the process, which will continue in further discussions in the coming weeks.