Kavei Hufsha (Holiday Lines), the Israeli tour operator that owns Greek airline Blue Bird and Cypriot carrier TUS Airlines, has begun working on establishing a new airline in Israel. The company aims to operate short-haul flights to destinations within a 4-5 hour radius of Israel.

Licensing and Operational Process

Launching a new airline is a complex and lengthy process. The licensing procedures with the Israel Civil Aviation Authority (CAA) are expected to take approximately six months, while the overall preparation phase is estimated to last at least 18 months.

The airline plans to commence operations either by purchasing aircraft or through dry leasing—leasing aircraft without crew and operating them with Israeli personnel. However, the process is still in its early stages, and Kavei Hufsha has yet to initiate the official licensing procedure with the CAA.

Target Destinations and Challenges

Kavei Hufsha’s existing European airlines are only authorized to operate flights from Israel to Europe, limiting expansion plans to destinations outside the European Union, such as Georgia and Dubai. The new airline aims to overcome these restrictions by offering flights beyond Israel’s traditional routes.

Preparations are also underway for potential approvals to operate flights to countries such as Saudi Arabia.

Due to Israel’s bilateral aviation agreements, foreign airlines cannot operate direct flights from Israel to third countries. However, some airlines, such as Wizz Air, have bypassed these restrictions by establishing subsidiaries in different countries.

Kavei Hufsha’s Current Operations

Kavei Hufsha is one of Israel’s leading tourism companies. In 2016, it acquired Blue Bird Airlines, and in March 2024, it secured a 33% stake in TUS Airlines. As of this month, the company has acquired full ownership of TUS Airlines, further expanding its operations.

Blue Bird has grown significantly at Ben Gurion Airport, climbing from the 11th to the 6th position in market share last year, with a 24% increase in passenger numbers. Meanwhile, TUS Airlines boosted its passenger volume by 10%, rising from the 23rd to the 8th position.

Ami Cohen, co-founder of Kavei Hufsha, commented on the new airline:

“The new company will operate alongside Blue Bird and TUS, which continue their flights to Israel. We are proud to remain one of the few foreign airlines still flying to Israel.”

Opportunities and Competition

Currently, Israel has four operating airlines: El Al (including its subsidiary Sun d’Or), Israir, Arkia, and Air Haifa. The new airline will be based at Ben Gurion Airport and aims to serve destinations such as Georgia and the United Arab Emirates.

© AeroHaber.com

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