Breaking El Al's monopoly on key air route, smaller Israeli company Israir to start direct New York City-Tel Aviv route

Israel's budget airline company, Israir Airlines announced on Monday that it had received official approval from the United States Department of Transportation (DOT) to operate flights to the United States on the high-demand Tel Aviv - New York route. 

The initial approval, which is expected to be finalized in June, according to a timeline shown to the board of directors, will be a temporary license for two years.

The DOT approval allows Israir to begin working on achieving compliance with Federal Aviation Administration and Transportation Security Administration regulations. If the airline demonstrates compliance with the standards during that time, it will be granted a permanent license. 

According to Globes, Israir will begin by operating Airbus A330 aircraft on a dry lease, using the company’s own employees. The company reportedly plans to begin flights around Passover 2026, but it has not yet indicated how many flights per week it intends to offer. 

Israir previously offered flights to the United States, but discontinued them several years ago after finding the routes economically unfeasible. However, after the start of the war, U.S. airlines canceled their flights, leaving El Al the only company flying the routes. 

The approval represents a significant step in Israir’s efforts to expand its air routes and compete with other Israeli airlines, particularly El Al.

Throughout the Gaza War, El Al has been the only company offering regular service to and from the U.S., allowing the company to gain a near monopoly on the main air routes between the two countries. 

Even as some U.S. airlines have begun resuming flights, some Israelis have continued to choose El Al, seeing it as a secure choice, which also benefits Israel.

While Arkia, another budget Israeli airline, has also begun flying the Tel Aviv - New York route in February, El Al’s practical monopoly has not really been challenged. 

Arkia currently operates 3 weekly flights to the U.S. compared to El Al’s 52 weekly flights. Some U.S. airlines, such as Delta, have resumed flights to and from Israel, while others, such as American Airlines, have yet to announce a resumption of flights. Some foreign airlines offer flights to the U.S., but do so via connections in other countries. 

This has allowed El Al to continue to dominate the U.S.-Israel market and maintain high prices on its tickets. Now, El Al’s dominance could be challenged by another Israeli airline offering direct flights. 

While the Passover holiday season represents one of the busiest seasons for travel to Israel, the Flight Hunter website said earlier today that the number of travelers through the Ben Gurion International Airport remains high following the official end of the Passover holiday.

According to the site, approximately 77,000 passengers are expected to pass through the airport on 479 international flights today.