AIRLINES COMPETE ON PRICE IN ISRAEL MARKET

Airfares in the Israeli market are being forced down by the low prices being offered by Arkia Airlines low cost arm, Arkia Express. It is offering $99 one-way fares to European destinations, which include new routes to Paris and Amsterdam and expanded services to Moscow, Kiev, and Rome. There was a heavy demand for Arkia’s low-cost fares, with 10,000 seats sold within the first ten days – most are to the new destinations. The low fares have forced foreign airlines to offer discounts to Israeli passengers.