Competition in Israeli skies heats up with planned new airline

Kavei Hufsha, owners of Blue Bird and Tus Airways, plan to launch new Israeli airline to expand competition and serve destinations beyond Europe; starting with two aircraft, airline expected to operate from Ben Gurion Airport within 18 months

Navit Zomer|
Israeli tourism group Kavei Hufsha is set to launch a new Israeli airline. The group, co-owned by Ami Cohen and Arnon Englander, already operates two European airlines—Blue Bird (Greece) and Tus Airways (Cyprus)—and is now seeking to expand its operations with an Israeli carrier.
"We have begun the process with the Civil Aviation Authority to obtain a license for a new Israeli airline," Cohen told Ynet on Tuesday. "This airline will operate alongside our existing carriers, not replace them. They will continue to serve Israel, while the new airline will complement them. It will be owned by Kavei Hufsha and serve as a sister company to Tus Airways and Blue Bird. We are a privately owned group and intend to remain so."
3 View gallery
מטוס בלו בירד
מטוס בלו בירד
(Photo: Shutterstock)
The new airline is expected to increase competition in Israel’s aviation sector, particularly against El Al, Israir and Arkia, which dominate flights to popular vacation destinations. However, by the time the airline becomes operational, foreign carriers are expected to have resumed full operations in Israel, following disruptions during the recent war. During that period, only Israeli airlines operated flights, leading to significant price hikes.
Kavei Hufsha is a major player in Israel’s tourism industry, marketing vacation packages and operating flights across Europe and the Mediterranean. The group owns the last-minute travel company HaDaka Ha90, the Greek airline Blue Bird and the online tourism platform BLIK. Last year, the company invested $3 million to acquire a 33% stake in Tus Airways, later completing its full acquisition for an additional $13 million. The group’s annual turnover is estimated in the hundreds of millions of shekels.
Cohen explained that an Israeli aviation license would allow the company to expand beyond Europe to destinations such as Dubai and Georgia, which its European airlines cannot currently serve.
3 View gallery
מטוס של חברת טוס איירווייז
מטוס של חברת טוס איירווייז
(Photo: Ronen Fefer / Shutterstock)
"Many Israelis travel outside of Europe, and we want to fly there too," Cohen said. "I believe the Abraham Accords will expand, peace agreements with Saudi Arabia will be reached and flights to Saudi Arabia and other currently inaccessible destinations will become possible. Increasing competition from Israel is the right move, and there is definitely room for another airline."
The company plans to operate from Ben Gurion Airport, initially with two narrow-body aircraft, expanding gradually. Cohen estimated that the licensing process would take around 18 months.
Get the Ynetnews app on your smartphone: Google Play: https://bit.ly/4eJ37pE | Apple App Store: https://bit.ly/3ZL7iNv
Tus Airways and Blue Bird currently play a significant role in flights between Israel, Cyprus and Greece. By the end of 2024, Blue Bird ranked sixth in total passenger traffic at Ben Gurion Airport, while Tus Airways ranked eighth, together accounting for 5.5% of overall passenger traffic last year.
3 View gallery
מטוסי אל על בנתב"ג
מטוסי אל על בנתב"ג
Record profits for El Al during war
(Photo: REUTERS/Ronen Zvulun)
Both airlines specialize in routes to Cyprus and Greece and recently expanded services to Sofia, Vienna, Barcelona, Prague and Budapest, responding to strong demand from Israeli travelers. These flights are marketed by Kavei Hufsha, BLIK and HaDaka Ha90, as well as by Israeli travel agencies.
The Englander family has been involved in the Israeli tourism industry since the 1950s. Yossi Englander, Arnon's late father, was a pioneer in Israeli tourism and was among the first to launch charter flights to Antalya. His son, Arnon, co-founded Kavei Hufsha with Ami Cohen, leading the company’s growth through mergers and acquisitions. Today, the group is one of Israel’s largest tourism companies, with significant stakes in airlines, travel agencies and vacation services.
<< Follow Ynetnews on Facebook | Twitter | Instagram | Telegram >>
Comments
The commenter agrees to the privacy policy of Ynet News and agrees not to submit comments that violate the terms of use, including incitement, libel and expressions that exceed the accepted norms of freedom of speech.
""