mecabq

"Exploit their extremely low cost structure" -- i.e., compete based on their effective business model against other inefficient players?

So you support the free market, except not really. By your logic, any new entrant to a market that has figured out to deliver services cheaper than an incumbent somehow constitutes an unequal playing field ipso facto. Please explain how an LCC entering the TLV market is not an "equal playing field." Even if you condemn "dumping," then what evidence do you have that a RyanAir entry into this market would inherently constitute such?

sn1ke

Out of curiosity, do Ryanair have planes that can handle the distance? If not, this could be a marketing ploy by them (I'm aware that they've done this in the past)

ELAL

Disgaree, as BRU has already the cheapest low cost carrier (on average) which is Jetairfly from LGG, meaning anybody intrested in LCC (and flexible on dates) has their fare share from BRU.

ELAL

The B738 can get to anywhere in Europe no problem (this is the aircraft which ELAL too use for most of their Europe flights.

gordo6

In fact, LY even use the B738 for TLV-LTN, so even LON-TLV shouldn't be a problem for ryanair.

mkilmo

The only thing which is really unfair w.r.t. to LY is the fact that they must hold some sort of minimal fleet available for the case of war.

redtailshark

Yes, there is giant fear of FR.

Because they do have a lower cost structure. Exactly.

MOL is great. There is so much hypocritical, self-serving bs peddled by most everyone else. He, to the contrary, delivers exactly what he promises.

And it's not Michael O'Leary who insults the rational consumers who know what they can expect from FR. It's other airline bosses who sanctimoniously sermonize against the evils of FR and tout philosophies of customer service that they contradict constantly with their own actions.

A small minority of BA-wannabe consumers believe the corporate mythology and expect full service from FR, and when disappointed, they complain. But I have never heard of MOL or any FR person promising them "a free cup of coffee" or anything else.

Your question is on the money. There is no good answer to this from protectionists.

Let MOL come to TLV and other markets and let the customers decide for themselves whether they want to "***** naked over broken glass" in pursuit of lower fares. Operational data - rapid loco expansion everywhere, especially for FR - supports MOL's hypothesis more than any other.

Let's recap what we can expect:

http://www.telegraph.co.uk/travel/tr...le-quotes.html

entropy

I think they fly 73G/738's which have a range in excess of 2500mi, LHR is 2250 away from TLV, so its well in range.

If LY has to hold aircraft in reserve, they ought to quote a price to the government for that service. Similarly, I think the groups who desire that LY does not operate on 1.5 days per week ought to provide LY a compensation factor based on capital underutilization.

NYTA

If the government decides they need LY as a strategic reserve then they can subsidize it but they should stop punishing consumers and business owners like me who live here by keeping out competition and keeping airfares artificially high. The fares to Europe from TLV are absurd by any standard. For example - I'm flying TLV-CDG tomorrow and nonstops are $1,200 on AF and LY. On TLV-LTN, it's $450 on Easyjet. Lower profits for my business, less taxes I pay to the Israeli govt. and I'm not even going to fly LY.

I have a number of European friends who started planning weekend trips to TLV and then canceled when they saw how high the airfares were. Less money for hotels, restaurants, taxi drivers etc. It's a net drag on the entire economy.

orbitmic

I think people are giving too much credit to FR! The article suggests that what FR are calling unfair competition is "keeping airport costs high". By that you can hear that FR have done what they always do, ask for special deals that typically involve reduced airport fees or contracts with its advertising branch, etc. There is absolutely nothing to suggest that Israel are doing anything to prevent FR from flying to TLV except that they have no interest in slashing their normal costs just to please the airline.

entropy

If that's the case, I have no problem with it. TLV isn't that expensive an airport to fly to relative to most of what Europe charges. I also thought that IAA charges airlines less to use the old terminal?

NYTA

Easyjet uses the old terminal because it costs less.

NYC2TLV

But we have no reason to believe that FR are strong-arming the IAA much like they did with MAN and BUD. Unless the IAA or Ministry of Tourism say that FR is using these tactics to drop rates/fees, we can't assume anything.

Also, I don't think FR are looking to create a base in TLV. Just to fly specific routes. I bet they will be LON, CRL and some German/Polish airports. But my dream would be that FR would operate from Morocco to TLV. Think about the brisk business you could do there. Maybe even more if you have the flight land in Netanya or Ashdod!

ELAL

Why do you think so?

I would assume Brussels already has low cost flights.

NYC2TLV

Yes, I forgot that TB operates between BRU and TLV. But I am confident that Ryanair will use these flights to TLV much like the flights to RAK from the UK and Spain. Instead, TLV, VDA or ETH will be the holiday choice for the closer bases in Germany/Poland.