Histadrut Declares Labor Dispute Over Wizz Air's Tel Aviv Hub Plan

Israel's largest labor union, HaHistadrut HaKlalit shel HaOvdim B'Eretz Yisrael (The General Federation of Laborers in the Land of Israel), has declared a formal labor dispute in the country's aviation sector. The action, which affects over 11,000 employees, is a direct response to a government plan that would allow Wizz Air Holdings Plc (Wizz Air) to establish a new operational hub at Tel Aviv's Ben Gurion International Airport (TLV).

The Core of the Dispute

The conflict centers on the potential impact of a foreign Low-Cost Carrier (LCC) establishing a local base. The Histadrut argues the move threatens the employment security and working conditions of employees at Israeli carriers El Al, Arkia, and Israir, as well as staff at the Israel Airports Authority (IAA). According to a report in The Jerusalem Post, the union contends the plan was advanced without consulting worker representatives. The proposed plan would see Wizz Air, a Hungarian ultra-low-cost airline, base three aircraft at TLV by April 2026, according to Reuters.

In a statement, Histadrut Deputy Chairman Roy Yaakov said, "Establishing a base for a foreign operator in Israel without an in-depth systemic review and without addressing the potential consequences will harm not only the employment security of the workers, but also the stability of the industry and the national interests of the State of Israel."

Market Context and Competition

The dispute highlights the ongoing tension between market liberalization and legacy airline stability. The 2013 Israel-EU Open Skies Agreement significantly increased competition, paving the way for LCCs to expand. As of January 2026, Wizz Air is the largest foreign and low-cost operator in Israel, according to CAPA - Centre for Aviation. The market share of LCCs for international seats in Israel is projected to reach 24% in the first half of 2026.

This increased competition has directly impacted national carriers. Data from CAPA shows that El Al's seat share at Ben Gurion Airport fell from 33.5% in 2012 to 22.1% in 2019 following the implementation of the Open Skies policy. The Histadrut's action reflects a concern that a permanent Wizz Air base would further erode the market position of local airlines and the labor standards they uphold.

What Comes Next

The declaration of a labor dispute initiates a mandatory cooling-off period. If negotiations between the union, the airlines, and government representatives fail to produce a resolution, the Histadrut could authorize strikes that would significantly disrupt operations at Ben Gurion Airport and across the Israeli aviation sector. The outcome will likely influence the future strategy for LCC integration and labor relations within Israel's evolving aviation market.

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