Tourism Ministry: Low-cost airlines will bring many tourists to Israel while also lowering prices for Israelis traveling abroad.
Belgian tour operator, Jetair NV, will begin operating two weekly low-cost flights between Tel Aviv and Liege in the winter of 2007. The airline will operate Boeing 737-700 passenger planes, which have a seating capacity of 150. Jetair is a subsidiary of German tour operator TUI AG (XETRA: TUI).
The Ministry of Tourism said it would provide Jetair with a safety net; if it cannot fill the seats, the government will pay compensation. Ministry of Tourism director general Shaul Tzemach and TUI VP head of destination airports Ronald Taylor discussed the operation of more routes for which the ministry will provide a safety net. Tzemach said that if Jetair wins demand for the Tel Aviv-Liege route, it will increase flights to three a week.
Tzemach added that low-cost airlines would bring many tourists to Israel while also lowering prices for Israelis traveling abroad.
Jetair controls 40% of Belgium’s tourism market. TUI is Europe’s largest tourism services operator, operating through six brands.
Published by Globes [online], Israel business news - www.globes.co.il - on July 17, 2007
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