Flydubai Incident Drives Israelis to Local Airlines, Price Hikes Expected
Translated & summarized from Globes by baba
Following the Flydubai incident, Israelis are increasingly opting for local airlines due to security concerns, leading to higher ticket prices. Data shows a significant rise in bookings for Israeli carriers to destinations like Thailand and Japan after the event. Experts predict that the reduced flight supply, particularly concerning connections through Dubai, will cause airfares to increase. While alternative connection routes exist, the overall market is expected to see price hikes, even for Israeli airlines.
The story in 5 lines · by baba
- Israelis are favoring local airlines over foreign carriers like Flydubai due to security concerns.
- Flight prices to Dubai and other destinations are expected to rise due to decreased supply.
- Bookings for Israeli airlines to Thailand and Japan increased significantly after the Flydubai incident.
- Average airfares to Tokyo and Bangkok have seen a price increase.
- Alternative flight connection options to the Far East are available through other airlines.
The recent incident involving Flydubai is expected to have significant economic repercussions for Israeli travelers, beyond its impact on aviation arrangements. Professor Asher Blass, an economics lecturer and former chief economist at the Bank of Israel, explained that reduced flight supply will likely lead to increased prices for flights to Dubai. He also noted that Israeli airlines, such as El Al, will gain an advantage not only on the Dubai route, if it resumes, but also on other destinations due to passengers' desire for greater security assurances. This preference for Israeli carriers is already evident in booking data from Gulliver. In the week following the Flydubai incident, the proportion of Israelis booking flights to Thailand on Israeli airlines rose from 48% to 66%, and to Japan from 41% to 53%. Demand for Israeli airlines also increased for flights to Rome, from 55% to 77%.
Data from Gulliver also indicates a rise in average airfare prices to the Far East. Round-trip flights to Tokyo increased from $1,011 to $1,127, and to Bangkok from $846 to $889, though it is too early to definitively attribute this solely to the shift in passenger preference. Tamar Garzon, CEO of Gulliver, suggested alternative connection routes to the Far East via Tashkent, Baku, and Addis Ababa, noting competitive pricing and potentially shorter layovers. She advised travelers to compare these options rather than relying solely on one itinerary.
Meanwhile, the return of Israeli airlines to Dubai appears delayed. Professor Blass elaborated that the reduction in connecting flight options through Dubai to the Far East, previously offered by both foreign and Israeli carriers, will decrease overall supply and drive up prices. While El Al and other Israeli airlines are expected to expand their services to meet demand, it remains uncertain whether all countries will permit increased flights from Israeli carriers, or if they possess the capacity for significant expansion. Regardless, Blass anticipates that prices on Israeli airlines will also rise.
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