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Wizz Air CEO: Wizz Air to open hub in Israel in April

Wizz Air Chief Executive Jozsef Vasradi announced that Wizz Air will open a hub for Israel by April. The Israeli government hopes this move will lower the cost of aviation.

Varadi met last week with Israel's Transportation Minister Miri regev and stated in a Sunday statement that Wizz was working to resolve regulatory issues and other matters by the end January. Varadi told Regev on Thursday that Wizz was "fully committed" to the idea of opening a Wizz facility in Israel.

Varadi stated that lowering the cost of living was a major concern for governments all over the world.

He said: "This is where... we can add value by creating an affordable air traffic infrastructure."

Wizz operates 36 bases across 19 countries. The Hungary-based carrier is looking at establishing a base either at Ben Gurion International Airport, near Tel Aviv where it operates flights currently, or at the smaller Ramon Airport, near the Red Sea resort of Eilat, at Israel's southernmost tip.

Israeli media reported Wizz will invest $1 billion over the next 3 years in the Israeli market by adding 50 routes, stationing 10 aircraft and creating 4,000 new jobs.

Regev stated that Israel faces high living costs and that competition would be the only way to lower them. She acknowledged that Israeli carriers were responsible for the majority of travel during the Gaza War, as other airlines had ceased operations. However, she said that the increase in airfares and the public's anger was a result. Regev stated in a statement that "we are committed to lowering the prices, increasing seat capacity and improving service."

Regev's plan is not fair to two of Israel's carriers, Israir & Arkia. They don't object to competition but Regev's plan is not fair.

Israir claimed that it created "unjustified gaps" between Israeli and other airlines, which directly harms the Israeli public. It also reduces the local flight supply and leaves Israel vulnerable to dependence on foreign airlines, who will then sharply increase prices.

Oz Berlowitz, CEO of Arkia, said in an interview on Army Radio Sunday that Wizz should be required to pay high security costs like Israeli carriers.

The main Israeli labour union also expressed concerns about the plan.

(source: Reuters)