New Airline Air Haifa Aims to Disrupt Israeli Aviation Market
Air Haifa, a new airline founded in 2023 by prominent Israeli business figures including former Ministry of Finance Director General Shai Babad and ex-El Al CEOs Gonen Oссиshkin and Miki Strasburger, is positioning itself to challenge the established aviation landscape in Israel. The company utilizes smaller aircraft for shorter routes to destinations like Greece and Cyprus, operating from Haifa Airport, offering an alternative to the primary Ben Gurion Airport for northern residents who have historically faced long travel times to southern Israel.
While Air Haifa is smaller than competitors such as El Al, Israir, and Arkia, it is already providing a viable option for northern Israelis and increasing competition. During recent conflicts, the airline played a role in evacuation flights, notably being the first Israeli carrier to repatriate its passengers and subsequently facilitating flights for customers of foreign airlines unable to fly to Israel.
Meanwhile, Arkia, owned by the Nakash brothers, has seen significant growth, increasing its market share at Ben Gurion Airport from 3% to 12% in three years. This expansion, fueled by the absence of foreign airlines, has led to new routes to New York, Bangkok, and Hanoi, intensifying competition with El Al. However, Arkia is currently facing criticism for flight cancellations and poor customer service this summer, appearing on lists of airlines with the most delays.
Israir is also expanding but has experienced substantial losses, reporting approximately $32.5 million in the first half of 2026, largely due to the war, which accounted for about $26 million of the deficit. Despite these financial challenges, the airline has invested around $85 million in two new Airbus A330 aircraft in preparation for direct flights to the U.S. Israir received final approval for commercial flights to the U.S. in August, with the inaugural Tel Aviv-New York flight scheduled for October 19, planning four weekly flights as it aims to compete on long-haul routes amidst a rapidly changing competitive environment for Israeli travelers.
