Negotiations to establish a hub of operations at Ben Gurion airport for low-cost airline Wizz Air have hit a snag, after months of talks between the carrier and the Ministry of Transport. The ministry blames the airline for not resuming Israel flights, but in reality these were circumstances known in advance by both parties.

Last week, Minister of Transport Miri Regev spoke to Wizz Air CEO Jozsef Varadi and asked to examine expediting the resumption of Israel operations, even if only gradually. The appeal was aimed at encouraging the airline to demonstrate a commitment to the Israeli market, ahead of setting up the hub, but in practice it led to no change in Wizz Air’s policy.

Behind Wizz Air’s reluctance to restart Israel flights, is the EU Aviation Safety Agency (EASA) advisory to avoid Israeli airspace, which was extended again last night until at least May 12. On the basis of this advisory, Wizz Air has repeatedly postponed its return to Israel. In previous situations in which EASA issued such an advisory, Wizz Air did not fly to Israel, and in practice it is not customary for European airlines to act contrary to EASA recommendations. Although this is a non-binding recommendation, it has significant insurance and operational implications, and so most airlines choose to comply with it.

The Ministry of Transport has acknowledged this throughout the recent period, and continued to promote the move to set up the hub despite the carrier’s halt in Israe activity. The ministry even explicitly stated that the mere fact of Wizz Air not returning to Israel at this stage is not expected to affect the negotiations, with only the extra competition such a hub would provide during routine times being taken into account.

Additional alternatives being examined

The development comes after major steps had already been taken to enable the establishment of the hub. Among other things, the state has approved that Wizz Air could base aircraft in Israel, which would provide an important operational advantage and allow it to operate like local airlines during peak hours.

Now, even if talks with Wizz Air have stalled, the mere approval to keep aircraft in Israel leaves the door open for another foreign low-cost company to take advantage of this and establish a hub of operations in Israel. The Ministry of Transport is examining alternatives to Wizz Air, to promote the entry of a foreign player that will increase competition in Israel’s aviation market.

There has recently been a change of government in Hungary, which may affect the economic and regulatory priorities for local companies operating in the international arena. Such a change could be reflected in a different approach to risk management, aviation policy and relations with security-sensitive markets, influencing, even if indirectly, the pace of the company's decision-making regarding the expansion of operations in Israel.

The move to bring Wizz Air to set up a hub in Israel met with widespread opposition from Israeli airlines. The opposition from the workers' committees in the industry focused on the implications of the move on competition and jobs. Workers even threatened to shut down Ben Gurion Airport shortly before the outbreak of the Iran war. Workers' committees in the aviation industry have significant public weight, especially before elections. In this reality, they are likely to influence the environment within which decisions are made, and in which Regev operates.

Published by Globes, Israel business news - en.globes.co.il - on May 6, 2026.

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