Flydubai Incident Drives Israelis to Local Airlines, Raising Ticket Prices
Translated & summarized from Globes by baba
Following the Flydubai incident, Israelis are increasingly opting for local airlines, leading to higher ticket prices for international flights. Professor Asher Blass noted that reduced flight supply will drive up costs, benefiting Israeli carriers like El Al. Booking data shows a preference shift towards Israeli airlines for destinations like Thailand and Japan. While alternative flight connections exist, the overall impact is expected to be a rise in airfares.
The story in 6 lines · by baba
- The Flydubai incident has led Israelis to favor local airlines, increasing demand and ticket prices.
- Professor Asher Blass predicts higher flight costs due to reduced supply and increased passenger security concerns.
- Booking data shows a significant rise in preference for Israeli airlines for flights to Thailand, Japan, and Rome.
- Average airfares to Tokyo and Bangkok have increased following the incident.
- Alternative flight connections to the Far East are available through other airlines and cities.
- The return of Israeli airlines to Dubai is delayed, impacting flight options and prices.
The recent events involving Flydubai are expected to significantly impact air travel arrangements in Israel, with emerging economic consequences for Israeli travelers. Professor Asher Blass, an economics lecturer and former chief economist at the Bank of Israel, explained that reduced supply will lead to increased flight prices to Dubai. He anticipates that El Al and other Israeli airlines will gain an advantage, not only on the Dubai route if it resumes but also on other destinations, due to passengers seeking greater security assurances. This trend is already visible in booking data, showing a marked increase in Israelis choosing local carriers for flights to Thailand, Japan, and even Rome following the incident.
Data from Gulliver indicates a rise in average airfares to the Far East. Round-trip flights to Tokyo increased from $1,011 to $1,127, and to Bangkok from $846 to $889, in the week after the incident compared to the week before. However, it is too early to definitively attribute this price hike solely to the shift in passenger preference, given the short comparison period.
Tamar Garzon, CEO of Gulliver, noted that while the suspension of Flydubai flights limits direct connections to the Far East, alternative routes are available. Passengers can now consider flights with Uzbekistan Airways via Tashkent, Azerbaijan Airlines via Baku, and Ethiopian Airlines via Addis Ababa, some offering comparable or shorter layover times. She encourages travelers to compare these options for attractive pricing.
Meanwhile, the return of Israeli airlines to Dubai appears delayed. Blass further elaborated that the competition, partly from connecting flights through Dubai to the Far East operated by foreign carriers, will diminish. This reduction in options is expected to decrease supply and increase prices. While El Al and other Israeli airlines are likely to expand their services to meet demand, it remains uncertain if all countries will permit increased flights from Israeli carriers, or if they possess the capacity to significantly scale up operations. Regardless, an increase in prices for Israeli airlines is also anticipated.
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