A day after Irish low-cost carrier Ryanair canceled its flights to and from Israel for March and April, Israel Hayom can report that the reason for this decision appears to be related to the fees it would have had to pay to use Ben-Gurion International Airport, despite the speculation that this could be in part related Israel's conduct in the Gaza war.
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The Israel Airports Authority decided to halt activity at Terminal 1 after the war broke out on Oct. 7. As a result all flights departing from Ben Gurion International Airport use Terminal 3.
Airlines that depart from Terminal 3 must pay higher fees compared to Terminal 1, where airport taxes are lower. The low-cost carriers that mainly flew from Terminal 1 before the operation began were able to save on fees by using Termina 1, which offers airlines a cheaper rate – allowing them, in effect, to also offer lower fares to passengers.
As long as the low-cost carriers had not returned to Israel, there was no problem keeping Terminal 1 closed – almost all airlines that resumed flights to Israel had originally used Terminal 3 before the war, meaning their fees had not changed compared to the pre-fighting period. But on February 1st, Ryanair returned to Israel and was the first low-cost carrier to resume direct flights to the country and had no choice but to start using Terminal 3, with higher usage charges, rather than use Terminal 1 as it had done before the war.
It has recently asked the authority whether it would be willing to charge less as if it were using Terminal 1 so that it could reduce airfare for passengers as well. However, according to sources dealing with the matter, this request was not granted.
In recent days, Ryanair tried to resolve the issue with the IAA but ultimately concluded that flights to Israel were not profitable so long as the higher fees were in effect, resulting in its flight schedule being suspended Ryanair was the first low-cost carrier to return to the country and offered especially low flight prices. It had planned to significantly expand both the number of flights and destinations in the coming weeks, and according to sources close to the company, Ryanair had big plans for the Israeli market, but the demand to use Terminal 3 and pay high airport taxes caused Europe's largest low-cost airline to leave Israel, and it is currently unclear when it will return.
Ryanair's exit from the market could lead Wizzair and easyJet to take similar measures, harming the Israeli consumer who will pay more amid high demand and low supply.
The Israel Airports Authority issued the following response after being approached by Israel Hayom: "Since the outbreak of the fighting, and against the background of the sharp decline in traffic volume at Ben Gurion Airport and the growing security needs, Terminal 1 was closed. All international and domestic flights moved to Terminal 3. At the current passenger volume, there is no economic justification for operating two terminals. Terminal 1 will return to activity if passenger volumes warrant so. Flights departing from Terminal 3 are subject to airport fees according to the set price. All airlines, including Ryanair, were aware of this before resuming activity."
Ryanair issued the following response:
"Ryanair today (Feb 13) confirmed that it has regrettably canceled its reduced schedule of flights to/from Tel Aviv from Tues, 27 Feb due to the Ben-Gurion International Airport's low-cost Terminal 1 no longer being accessible for low cost, low fare airlines. Ryanair previously operated to the low-cost Terminal 1, which has not yet been re-opened, with high-cost Terminal 3 being the only terminal currently open at Ben-Gurion International Airport.
Ryanair remains committed to Tel Aviv and looks forward to resuming operations when the low-cost Terminal 1 is re-opened.
Affected passengers have been notified and advised of their options. We sincerely apologize for any inconvenience caused to passengers as a result of these regrettable cancellations."
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