Israeli Aviation Needs Long-Term Investment to Thrive

2025-01-01

The Israeli aviation sector faces significant challenges despite its resilience in the face of recent crises. El Al CEO, Dina Ben Tal Ganancia, emphasized the critical need for long-term investment in infrastructure to accommodate growing demand and ensure the sector’s future success.

Speaking at Calcalist’s 2025 Forecasts Conference, Ben Tal Ganancia acknowledged the sector’s achievements in maintaining connectivity during the past year, handling a substantial portion of cargo and passenger flights. However, she highlighted several pressing concerns, including limited last-minute seat availability due to the absence of low-cost carriers, rising operating costs, and a surge in consumer prices.

Ben Tal Ganancia stressed the importance of government investment in infrastructure, particularly in expanding airport capacity to accommodate increased air traffic. She emphasized that delays in critical projects, such as the light rail, hinder the sector’s growth and contribute to higher travel costs. Furthermore, she advocated for a shift in consumer behavior, encouraging travelers to be flexible with destinations and book flights in advance.

Looking ahead, El Al aims to expand its fleet to 60 aircraft and serve 30 million passengers by 2030. However, achieving these ambitious goals requires a robust and sustainable infrastructure. Ben Tal Ganancia emphasized the need for greater self-sufficiency, citing the vulnerability exposed by the COVID-19 pandemic. El Al is taking proactive steps to enhance its operational independence, including investing in pilot training simulators and bringing key operations in-house.

Ben Tal Ganancia highlighted the significant global growth in air travel, with passenger numbers expected to double in the next 20 years. This surge in demand necessitates a substantial increase in aircraft production, while simultaneously addressing challenges like pilot shortages and rising manufacturing costs.

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Dina Ben Tal

The emphasis on infrastructure development is crucial. Expanding airport capacity is not merely about accommodating increased passenger traffic; it is about ensuring the sector’s resilience in the face of future disruptions. The COVID-19 pandemic starkly revealed the vulnerabilities of over-reliance on external factors. By investing in domestic infrastructure and enhancing operational independence, Israel can strengthen its aviation sector and safeguard its global connectivity.

Furthermore, the call for a shift in consumer behavior is significant. By encouraging travelers to be more flexible and plan ahead, the industry can better manage demand and potentially mitigate some of the pressures on pricing and availability.

However, the success of these initiatives depends on collaboration between the government, the aviation industry, and consumers. The government must play a crucial role in facilitating infrastructure development, while the industry must prioritize innovation and efficiency. Consumers, in turn, must adapt their travel habits to support a more sustainable and efficient aviation sector.

The Israeli aviation sector stands at a critical juncture. By embracing proactive measures, fostering collaboration, and investing in long-term sustainability, Israel can ensure that its aviation sector continues to thrive in the face of global challenges and contribute significantly to the nation’s economic growth.