Afternoon Tea in Jerusalem Blog

In addition to my work as a business coach, one of my interests is blogging about life in Israel. This is a country full of contrasts – over eight million citizens living in an area the size of Wales. You can see snow and the lowest place on the globe in the same day. Although surrounded by geopolitical extremes, Israel has achieved a decade of high economic growth. My work brings me in contact with an array of new companies, exciting technologies and dynamic characters. Sitting back with a relaxing cup of strong tea (with milk), you realise just how much there is to appreciate in the Holyland. Large or small operations, private sector or non profit, my clients provide experiences from which others can learn and benefit.

It is about 18 months since a 27 year old religious studies student gained control of El Al, the primary airline for Israelis and many Jews around the globe.

Blame corona or poor financial planning or government interference, but in November 2021 the company is still dependent on tens of millions of dollars in additional taxpayers money to keep afloat. The scenario is not promising. Could it have been better?

Choosing a niche market is never easy for any company. El Al is expected to serve all, whilst facing security challenges (expenses) that do not apply to 90% of its competitors. However, others have succeeded in this difficult market.

flydubai first flew to Tel Aviv in November 2020, becoming the initial airline to operate commercial flights on the route to the Gulf. With 123 rotations planned for December, Tel Aviv will be the joint most served airport on the airline’s route network in the lead up to the Christmas rush. Profits are assumedly being counted up.

On a separate level and whatever future plans El Al is considering, it is generally accepted that Israel needs another international airport and that the country is way behind in the planning stage. One possible option – in Jerusalem – is about to be withheld for good.

Until the year 2000, northern Jerusalem was the site of an international airport. It was originally developed in the 1920s during the British Mandate. The Atarot site boasted flights to many leading destinations around Europe and the Middle East. It was used by Prime Minsters and celebs. The violent Palestinian Intifada put paid to all of that. Today, the runway is a parking lot for buses.

As for tomorrow? Next week, Jerusalem planning committee is set to approve 9,000 new homes in the area. The international community is likely to scream foul play. Either way, El Al, flydubai and others are likely to have to find their route to profitability along an alternative flight path.

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