British carrier bmi will reduce the number of weekly flights between Luton (north of London) and Israel from 14 to 12 in its winter schedule. The cut is due to the expected slowdown in passenger traffic in the coming months.
bmi began operating flights to Israel in 2008 with one daily flight. In March 2009 the carrier began operating two daily flights and increased capacity by 13% by switching from the A321 to the A330 airbus.
The Israel Airports Authority reports that since inaugurating flights bmi has brought 124,000 passengers to Israel, representing 1.8% of traffic at Ben Gurion Airport. Following a recent sales promotion, bmi reduced fares to London to $378.
From the start of November, bmi will face additional competition on the Tel Aviv-London from low-cost carrier easyJet plc (LSE: EZJ), which offering fares to London from as little as €150 (NIS 900).
This will only intensify the already fierce competition on flights between Tel Aviv and London and will significantly reduce fares. British Airways (LSE: BA) has reduced its fares to London to $400 and El Al Israel Airlines Ltd. (TASE:ELAL) seats in its "low-cost' department for a similar price.
Published by Globes [online], Israel business news - www.globes-online.com - on September 15, 2009
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