How the FlyDubai incident affected the air travel market
The FlyDubai incident caused a sharp rise in shares of Israeli airlines: El Al rose by 7%, Israir by 5.4%. The author links the growth to a shift in passenger sentiment, who, in his opinion, will begin to prefer local carriers due to strict pilot selection and a state-backed security system.
The emergency incident on a FlyDubai flight immediately impacted the financial market. In morning trading, El Al shares rose by 7%, and Israir shares by 5.4%. The author claims that investors reacted to a change in public sentiment: Israeli passengers, in his view, will begin to consciously prefer local carriers. Arguments cited include strict selection of pilots with Israeli citizenship and a unique multi-level security system supported by the state. It is noted that FlyDubai controlled about 3.5% of passenger traffic at Ben Gurion Airport. El Al's market share is 44%, Israir's is 13.5%. Israeli companies do not yet fly to Dubai due to security bans, so their current gains come from increased demand for other direct flights. Over three years, El Al shares rose by 422%, while Israir showed a moderate decline. The article does not contain details of the incident itself, does not name victims or causes, and does not include opinions from airline representatives or analysts.