RyanAir: Israeli gov't thwarting Tel Aviv flights
Feb 6, 2013, 3:15 am
#31
FlyerTalk Evangelist
Join Date: Mar 2008
Location: Netherlands
Programs: KL Platinum; A3 Gold
Posts: 28,748
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.
That Ryanair is a bit more blatant about asking for such sweeteners - and withdrawing from routes once such sweeteners are withdrawn - is not such a surprise. If a route is viable, and all other things being equal, Ryanair will probably keep serving the route. If a route doesn't become viable even after the period of support ends, then they would be mugs to continue flying the route.
And Ryanair (like any airline) is free to determine whether or not it will serve a particular airport/route. For instance, Ryanair will never serve Amsterdam Schiphol - despite the presence of a "low cost" terminal there - as it finds the charges too high and it can pick more attractive low-hanging fruit elsewhere.
Feb 6, 2013, 12:17 pm
#32
Join Date: Jan 2011
Location: YYZ
Posts: 765
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.
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.
Not a surprise considering that it has appeared that the State has been willing to turn a blind eye to the high costs of just about everything on the back of consumers.