Transportation Minister Miri Regev has frozen talks on establishing a permanent Wizz Air base in Israel after the Hungarian low-cost carrier again delayed its return to Ben Gurion Airport.
Regev told ynet that while Israel still wants to encourage low-cost carriers to open local bases to increase competition and lower fares, Wizz Air’s failure to resume flights has forced the Transportation Ministry to halt the discussions for now.
She said the ministry remains in contact with other low-cost airlines.
The decision comes as the global aviation industry faces renewed pressure from rising jet fuel prices, which has hit low-cost carriers particularly hard.
Just months ago, Israel advanced a major regulatory change meant to allow Wizz Air to establish a hub at Ben Gurion Airport. The plan included an investment of about $1 billion, stationing 10 aircraft in Israel and adding dozens of new routes.
For about 18 months, the Transportation Ministry and Wizz Air held talks on the planned base. Wizz Air CEO József Váradi visited Israel in November 2025 for a meeting with Regev and said the company planned to establish an Israel hub in 2026.
At the time, Wizz Air said it intended to invest about $1 billion in Israel over three years, station 10 planes in the country, add about 50 new routes beyond its roughly 20 existing routes and create thousands of jobs.
Israeli officials viewed the plan as a way to increase competition and reduce airfares. Israeli airlines warned it could undermine fair competition and harm their ability to maintain aviation continuity during emergencies.
A key obstacle was a ban on foreign airlines parking aircraft overnight at Ben Gurion Airport, a basic requirement for operating a permanent base. In February, an interministerial committee approved lifting the restriction, despite strong opposition from Israeli carriers and threats of legal action.
The change would have allowed Wizz Air to keep aircraft and crews in Israel permanently and use peak-hour slots, significantly expanding its flights and destinations from Israel.
But despite the regulatory progress, Wizz Air continued extending its flight cancellations, currently through May 19, prompting Israel to freeze the hub plan.