IsrAir Moves to Low-Cost Pricing Model

Beginning Wednesday, Israeli carrier IsrAir will adopt a “low cost” model, with fares tiered at different prices for levels of service. The first flights to be priced according to the low-cost model will be on flights to and from Bucharest, which will cost $35 in their cheapest form. By April, all of IsrAir’s flights will adopt the model.

Under the model, fares will be lowest for passengers who take a single carry-on bag and don’t check luggage, and don’t choose their own seat. Choice of seat and checking a bag will raise the fare. The low-cost space has become increasingly popular – and competitive – as Israel’s “Open Skies” policies have attracted numerous competing low-cost carriers. With the imminent opening of Ramon Airport near Eilat, even more low-cost carriers are expected, further eroding the market for full-fare only flights.

In a statement, the company said that it was “offering customers the opportunity to design the vacation that fits their needs, based on budget, time and destination. We believe that moving to this model will allow the customer to choose the flight that fits their needs best, and this will enable customers to pay for what suits them and what they really need will generate real value for them, and enable them to select the most worthwhile vacation.”