Airfares in the Israeli market are being forced down by the low prices being offered by Arkia Airlines low cost arm, Arkia Express. It is offering $99 one-way fares to European destinations, which include new routes to Paris and Amsterdam and expanded services to Moscow, Kiev, and Rome.
There was a heavy demand for Arkia's low-cost fares, with 10,000 seats sold within the first ten days – most are to the new destinations.
The low fares have forced foreign airlines to offer discounts to Israeli passengers.
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