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Old May 28, 09, 1:51 pm   #1
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LY considering to returns nonstop for MIA-TLV

Hi All,

LY will considers to returns back for MIA-TLV nonstop sometime in year of 2010. This is reason why LY has been discontinuation this route for MIA-TLV due to high cost of the fuel. It might to be returns nonstop on operate 777 aircraft, if they availability for which equipment will be choose. So here the news article published came in today:

http://www.thejewishweek.com/viewArt...ort_Takes.html

Hopefully if the economic will getting better sometime in 2010. I'm sure LY will be very successful route for MIA-TLV operating 2x or 3x weekly frequency.
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Old May 30, 09, 8:28 am   #2
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with the 30% increase in fuel prices last month I don't believe this will happen, elal can't keep the prices at current level.
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Old Dec 10, 12, 11:06 am   #3
 
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Now that Israel has returned to Category I status by the FAA, LY is free to resume this route, hopefully with 777 aircraft. It has been over a month and so far no word from LY about resuming this route. I understand it takes time open/re-open a station and begin long-haul flying but am a bit surprised we haven't heard anything.
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Old Dec 10, 12, 9:06 pm   #4
 
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AAERSTL,

I don't think LY will start any new routes in the USA, particularly MIA until they are able to procure more fuel efficient long haul ac (either more 772's or even A330's). They simply cannot allocate any of their 6 772ER's for that route given that they added capacity to LAX and far east destination which are far better money makers for LY than MIA ever was. When they flew that route it was with a 762 and they could not make it work because that a/c is a gas guzzler. What LY will likely do is expand their code share with AA and have passengers funneled through their JFK hub. Now that DL no longer flies to TLV from ATL there is really no need to have a non-stop to that part of the country anyway.
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Old Dec 10, 12, 9:49 pm   #5
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I think LY will have orders more 772ER & 77W aircraft. They needed to bring more capacity growth and more specific new route. It just only 6 772ER aircraft, but it is not enough. Why they can't be wasting the money. They have to orders more than 10 77W & 12 772ER aircraft as well.
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Old Dec 10, 12, 11:12 pm   #6
 
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N830MH,

What EL AL needs and what EL AL can afford are two different things. A few years ago they had orders for more 772's and even 787's however canceled them in 2009 due the the global financial crisis and their own poor financial situation which was part of the reason why former CEO Haim Romano and Chairman Izzy Borovich left the company. Since Shkedy came to the company in 2010 they made a $57million profit that year, followed by a $50 million loss in 2011, and this year barely breaking even as of the end of 3Q.

Bottom line is that barring some sort of amazing deal, EL AL simply cannot afford to acquire numerous expensive brand new long haul aircraft. This is why they purchased two used 744's in recent years. EL AL is also facing diminishing market share in some part because management failed to gain entry into an alliance. What EL AL needs to do is rationalize the fleet around no more than 2 a/c types, refurbish existing a/c to international standards for long haul ops, streamline management, and increase efficiency. Only then will EL AL gain the requisite market share which will warrant a relatively large (for them) purchase of expensive new long haul a/c.
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Old Dec 11, 12, 4:47 am   #7
 
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Quote:
Originally Posted by ELY001 View Post
AAERSTL,

I don't think LY will start any new routes in the USA, particularly MIA until they are able to procure more fuel efficient long haul ac (either more 772's or even A330's). They simply cannot allocate any of their 6 772ER's for that route given that they added capacity to LAX and far east destination which are far better money makers for LY than MIA ever was. When they flew that route it was with a 762 and they could not make it work because that a/c is a gas guzzler. What LY will likely do is expand their code share with AA and have passengers funneled through their JFK hub. Now that DL no longer flies to TLV from ATL there is really no need to have a non-stop to that part of the country anyway.
First off welcome to FlyerTralk ELY001!

My understanding was the route was profitable, just not with a high cost and low capacity 767-200ER (fewer seats to spread the high costs over) after the fuel price run-up in 2008. By the time LY had free 777s they ultimately sent them to GRU since at the time Israel was Category 2 restricting LY from adding new service tot he US. In the South Florida region there certainly is demand for such a flight, it's the largest unserved O&D market from TLV.
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Old Dec 11, 12, 3:30 pm   #8
 
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AAERSTL,

My understand from speaking to people in the inside at EL AL was that the route was never profitable because the 762's used were gas guzzlers and they did not offer enough C class seats. The flight was also weight restricted which limited cargo too.

The reason LY never even bothered putting a 777 on that route (aside from not having one to spare) was because they projected it would be a low yielding route even with a more efficient and larger ac. Most of the pax on this route were leisure travelers who wanted the lowest possible fare and demand was just not there for 777 service. This is also why DL scaled back ATL-TLV services on their 777's as well.
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