New Israeli airline set to launch: What you need to know

Cypriot and Greek carriers TUS Airways and Blue Bird, owned by Israel’s Holiday Lines, clear regulatory hurdle to launch TUS IL; 'This is a new airline that will compete for the benefit of the Israeli public,' says CEO Nir Dagan

The Transportation Ministry announced Sunday that Transport Minister Miri Regev has signed a commercial license for Cyprus-based TUS Airways, a company owned by Israeli travel firm Holiday Lines.
The approval follows the airline’s compliance with all requirements set by the Civil Aviation Authority under the Air Services Licensing Law. Holiday Lines also owns Greek carrier Blue Bird Airways.
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מטוס של חברת טוס איירווייז
מטוס של חברת טוס איירווייז
TUS Airways Airbus A320 airliner
(Photo: Ronen Fefer / Shutterstock)
In a statement, the company thanked Minister Regev for her support, calling the license "a significant milestone" in the creation of a new Israeli airline, to be named TUS IL.
"We are excited to contribute to strengthening Israel’s civil aviation, expanding travel options and offering accessible, reliable service," the company said. "TUS Israel, alongside TUS Cyprus and Blue Bird, will fly to a range of destinations, enhancing competition for the benefit of Israeli consumers."
According to the Transportation Ministry, TUS is expected to complete its operational licensing process soon and formally join the roster of Israeli carriers—projected to be the largest airline fleet ever operating under the Israeli flag. Officials said the move is expected to bring added stability and competition to the national aviation sector.
Once fully licensed, TUS IL will be authorized to fly beyond Europe. The combined fleet of TUS and Blue Bird currently includes 10 aircraft, three of which are under wet lease agreements. TUS IL CEO Nir Dagan, former head of Israeli carrier Arkia, said the new airline will operate four Airbus A320 aircraft.
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מטוס בלו בירד
מטוס בלו בירד
Blue Bird Boeing 737 airliner
(Photo: Shutterstock)
“We’re now focused on aligning everything with Israeli aviation regulations,” Dagan told Ynet. “Progress depends on how fast we move with the Civil Aviation Authority. We’re hoping to be ready by the first quarter of 2026, with flights starting in the second quarter.”
Initially, TUS IL plans to operate routes from Cyprus to destinations including Greece, Rome, Berlin, Prague, Vienna, Naples, Bergamo, Sofia and Burgas. Later, the airline aims to expand to long-haul routes, including Dubai and Abu Dhabi.
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The new Israeli airline is expected to bring significant competition to the aviation market, with company officials pledging affordable fares and high service standards. “This is a new airline that will fight for Israeli consumers, on price and service, just as Israeli carriers are known to do,” said Dagan.
Transport Minister Regev welcomed the development. “This is both a consumer and strategic breakthrough,” she said. “It will expand competition, increase destination options and help lower airfares. TUS IL is the second airline to join Israel’s fleet during my tenure, following the launch of Air Haifa, which is already operational.”
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שרת התחבורה מירי רגב
שרת התחבורה מירי רגב
Transport Minister Miri Regev
(Photo: Alex Kolomoisky)
Regev emphasized the importance of Israeli carriers that continue flying even during wartime or crises—when foreign airlines often suspend service. “Expanding the Israeli fleet with operationally capable airlines will ensure uninterrupted connectivity for Israeli citizens under any circumstance,” she said.
However, a current security directive from the Shin Bet security agency continues to bar Israeli airlines from landing in Paphos, Cyprus. If that restriction remains, TUS IL will also be unable to operate flights to the destination once it begins service.
With a full Israeli license, TUS IL is positioned to serve a wide range of routes beyond Europe, potentially reshaping price competition and availability on numerous lines. In a wartime reality where Israeli airlines have maintained consistent service, the addition of another Israeli carrier is expected to enhance supply and connectivity—particularly across European destinations.
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