mikebg

Seeing as I am in the process of moving from EL AL to BA, mainly because the business class fares from TLV-LON and NYC are so much cheaper, for what is unquestionably a better product (in business class) I was curious to hear from more than one acquaintance that EL AL, in their opinion, was actually usually significantly CHEAPER than BA. Upon further investigation it transpired that they fly economy.

It seems to me that what EL AL are doing is catching the price conscious lower end of the market with attractive prices, whilst treating the upper end of the market as being pretty much a captive audience, with brand (and national) loyalty playing a significant part in the 'act'. It would seem that many Israeli companies simply don't bother checking the alternative offers from other airlines and just 'go for EL AL'. Knowing many Israeli companies, that actually doesn't really surprise me at all.

High prices and virtually no investment in the 'hard product' in the premium classes are effectively subsidising the cheaper economy class fares that they offer.

However, given time, it is quite clear that word will spread that there are better offerings available elsewhere for less money, and then the whole house of cards will come tumbling down.

gordo6

I also find BA more expansive to London in business... The cheaper tariffs at BA are sold way before the flight while those in LY can be usually purchased only a month or so in advance..

clubman

Let's have a look shall we...

TLV-LHR-TLV

16-19 February
BA: $1950
LY: $2018

23-26 February
BA:1950 (I seem to have got the last I fare this morning)
LY: $2238

02-05 March
BA: $1799
LY: $1833

09-12 March
BA: $1540
LY: $1813

16-19 March
BA:$1799
LY:$1833

23-26 March:
BA: $1958
LY: $2408

looking at a few dates further forward:

04-07 May
BA: $1514
LY: $1819

11-14 May
BA: $1549
LY: $1813

And just a little further forward

07-10 September:

BA $1546
LY: $1813

I can go on and on of course, but the fact is I cannot find a single date where LY's fares are cheaper, and while I agree I fares can go rather fast, if you can get them you are looking at $300 cheaper than LY's cheapest fares and more often than not even when I is gone, BA's fares are still cheaper.

And let's not forget that you can often add a european sector in needed included in the same price with BA.

mikebg

It is also important to note that BA 'I' class fares get full tier points, whereas EL AL's discounted business class fares don't.

joshwex90

I too have seen LY competitive USUALLY (though far from always) with the better international carriers on Y fares. I've even gotten some good deals in LY Y, such as $800 r/t TLV-EWR.
I have NEVER seen anything approaching competition in the premium cabins.

LY wanted $4800 in C. BA wanted $5500 in F. C was $3300. It's just pathetic.

But to me, LY is like Orange. They just don't seem to care about competition. And they manage fine because of a captive audience, that in the short-term is just fine for them, but in the long-term, once these companies get younger people in control who understand the global market, will leave LY (and Orange) in a heart beat.

entropy

I'm pretty sure LY has deals with most of the major corporations in Israel such that they get substantial discounts on their fares; a situation that of course is not unique to LY.

And I'll add that while BA offers a superior product to LHR, LY's short haul "C" is much better than eurotrash "C", and nonstops to many more European cities, which may be more important to a VFF than connecting on a painful seat thru FRA or VIE, or through a (unfortunately, now) hostile state.

Where LY is grossly uncompetitive is flights to North America, where their competitors all offer superior longhaul product in J.

Alpha Golf

I know of at least one very major company that requires El Al because of their perception of security. (Of course, they then let their employees drive on Israeli roads...)