Wizz Air's 'high-stakes' Israel base exploits market gap but risks are 'severe'

Wizz Air's plans for a base in Israel allows the airline to exploit a gap in the market for low-cost carriers after a retreat by competitors Ryanair and easyJet, but risks are high, according to analysts.

The Israeli aviation market poses a tough challenge for foreign carriers who face high operational costs, steep security risks and mounting uncertainty due to geopolitical volatility, they say.

The decision comes after Wizz Air said in July that it would exit its operations in Abu Dhabi, its only base in the Middle East at the time, to focus on its core markets after a “comprehensive reassessment” and “strategic realignment”.

Wizz Air’s decision to station aircraft in Tel Aviv is a “high-stakes strategic pivot”, Dean Mikkelsen, an independent aviation and security analyst, told The National.

“This move is less about building a regional 'hub' and more about exploiting a lucrative market vacuum,” he said.

“By entering Israel now, Wizz Air is betting on the high-yield, inelastic demand of an 'island economy' where competitors like Ryanair and easyJet have retreated, allowing it to challenge El Al’s monopoly and capture significant market share despite the active conflict.”

Wizz Air said on Sunday it was planning to establish a hub in Israel by April, amid objections from local airlines.

The ultra-low cost carrier plans to base 10 aircraft in Israel, double its network size and create thousands of jobs, local media reported.