An inter-ministerial committee has decided to cancel the restriction preventing foreign airlines from parking aircraft overnight at Ben Gurion Airport, a move expected to significantly increase competition in the aviation market.
The panel - comprising the Ministries of Transportation, Finance and Tourism, along with the Civil Aviation Authority (CAA) - reviewed the longstanding regulation that barred foreign carriers from keeping aircraft in Israel overnight. The limitation was seen as a major obstacle to establishing permanent operational bases, particularly amid Wizz Air’s efforts to expand activity in Israel.
Without overnight parking, foreign airlines were unable to operate early morning flights between 5:00 and 7:00 a.m., considered the most in-demand and profitable שעות. Israeli carriers - El Al, Israir and Arkia - effectively held a monopoly over these departures.
The new decision will allow foreign airlines to maximize aircraft utilization, operate additional daily rotations, and compete directly on early morning routes. Increased competition over coveted airport slots is also expected to put downward pressure on fares.
Israeli airlines have strongly opposed the move, citing limited parking space and infrastructure at Ben Gurion Airport. The Ministry of Transportation, however, argued that the previous policy created a de facto monopoly favoring local carriers.
Outstanding issues between the ministry and Wizz Air remain, including the airline’s obligations during emergencies. As a carrier regulated by Europe’s EASA, Wizz Air could be required to suspend operations in the event of a security escalation. Another unresolved dispute concerns the location of the proposed base: the ministry favors Ramon Airport in southern Israel, while Wizz Air insists on Ben Gurion.
The change is expected to take effect next week following publication of the official protocols. Despite opposing the measure, the CAA will now be required to publish procedures enabling foreign airlines to apply to establish permanent bases.