Copenhagen's largest low-cost operator, Cimber Sterling, will begin new non-stop services to Tel Aviv this winter, operating three weekly flights from November 1 with B737-700 aircraft.
The new route marks Cimber Sterling's first foray into the Middle East. Currently its service to Antalya is its only scheduled route that is located outside Europe.
WHY HAS CIMBER CHOSEN TEL AVIV?
Cimber will be the only carrier operating the route and IATA BSP data for April 09-10 illustrates that there is clearly demand on this sector. Over 41,000 passengers flew the city pairs during this period and Austrian Airlines captured 24% of the traffic via its Star Alliance hub in Vienna.
With no El Al presence in the market, Cimber will see Tel Aviv as a niche, regulated market for it to move in on. The sector length means that aircraft utilisation will be good and turnover time is slated to be less than one hour. Plus, Tel Aviv is growing in popularity as a leisure destination and there will be plenty of opportunity for ancillary revenues on the route from catering, duty free and excess baggage charges. There is also year-round traffic demand from the Jewish communities in Israel and Scandinavia, a two-way tourism product and some connecting traffic.
The route does not need a daily service and Cimber will be able to pull traffic from all of Scandinavia with its smaller ATR and CRJ aircraft type. Over 108,000 passengers flew from Scandinavia to Tel Aviv according to IATA BSP data (April 09-10) so Cimber will have the opportunity to use its smaller fleet to feed from regional markets within Scandinavia.
As a destination, Tel Aviv offers something new to the Cimber Sterling network. Like so many low-cost carriers in Europe, Cimber is looking for new markets and Tel Aviv is attractive as it provides shelter from competition from Norwegian.
Norwegian and Cimber currently compete on nine routes at Copenhagen, with both focused on serving sunshine and city break routes.
Cimber may seek to follow Jet2.com's strategy - the UK carrier proactively targets markets not served by Ryanair and easyJet and instead operates on niche routes. Jet2.com currently successfully operates to Tel Aviv from Manchester with no competition.
Ultimately, Cimber will use Tel Aviv as a starting point for further future expansion in the Middle East and North Africa. If this route is successful, Cimber will be sure to look at other markets in the region, particularly as Norwegian recognises the benefits of operating to non-European markets, as is clear by its plans to start services to Marrakesh and Dubai soon.
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