The student travel company, ISSTA, which is Israel's largest travel and tourism group, will operate a regular low cost airline to New York starting in September. The plans of Arkia, which holds 25% of ISSTA's shares, to operate charter flights to the US, have been cancelled.
In the first stage, three to four weekly flights to the US will be operated, and ISSTA plans to expand this to seven weekly flights. The flights will use Boeing 747-300 planes with 440 passenger seats each. Two sections will be operated: 400 passengers will fly tourist class and 40 will fly business class.
ISSTA group general manager Achishai Gal told "Globes" today that the group expects to fly over 400,000 passengers this year, of which 15% will fly to the US.
"In view of the potential of this line", Gal said, "especially with the exit of Tower Air from the market, we decided to provide the traveling public with a flight solution to the US at easy prices. Marketing of the new line will begin in July."
ISSTA's announcement intensifies the existing competition on flights to the US, El Al's chief profit hub. This line is the most competitive route in Israeli aviation, with 1.1 million passengers per year.
Currently operating flights to the US are the largest number of airlines in Israel: El Al, TWA, and Continental. American Airlines last week announced its intention to begin flying to Israel in October to the Ministry of Transport.
Published by Israel's Business Arena on May 25, 2000