Competition in the Israeli Air Transportation Industry Growing

During 2006 several companies received IAA's approval to increase flight frequencies. Two companies began cargo service to and from Israel
 
A study published last week by the Israeli Airport Authority (IAA), for the year 2006, shows increased competition in the Israeli air transport industry, passengers & cargo alike.
 
The report noted that the fierce competition would be strongly felt through 2007 and even further. The study's main findings point not only at increased flight frequencies of foreign airlines, which contributed to the competition, but also at the fact that most companies have deployed wide body jets which carry more passengers and offer more cargo capacity.
 
During 2006 several companies; Air France, Austrian Airlines, Iberia, Continental & Trans Airo received IAA's approval to increase flight frequencies. Additional factor which was identified by the study was the increase in number of new foreign airlines flying to Israel.
 
Three new companies began schedule air services to Israel; Delta, which inaugurated a direct flight to Atlanta, Hapag Fly and Air Baltic from Latvia.
 
Two more companies, Royal Jordanian & Korean Air, began schedule cargo service to and from Israel. The study noted that in 2006 El Al did not increase its seats capacity compared to 2005, thus reducing its overall market share.
 
The same applies to the cargo sector where the combines market share of El Al & CAL in the air cargo sector, in 2006, was 67.2% compared to 68.7% a year earlier. The study pointed out that the increased competition has had strong influence on the cargo freight rates which declined as well as on passengers air fares.