Israel will soon have a new airline after the country’s Ministry of Transportation approved the launch of a new carrier backed by tour operator Kavey Hofsha.
Kavey Hofsha, which is owned by entrepreneurs Ami Cohen and Arnon Englender and also operates under the brand name “Holiday Lines”, is a major player in the Israeli travel sector. Its owners also control two airlines in the European Union: Blue Bird Airways in Greece and TUS Airways in Cyprus.
The latter carrier will provide the basis for the new airline. Although details of the exact structure of the deal are not yet fully known, it appears that TUS Airways will be granted a license to operate under Israeli registration, with the new carrier tentatively being named “TUS IL”.
Under this arrangement, both Blue Bird and TUS Airways will continue their normal operations, but the obtention of an Israeli registration will also enable the latter to perform services between Israel and third countries.
According to information published by Israeli media, TUS IL will start operating a fleet of four Airbus A320 aircraft, linking Tel Aviv Ben Gurion International Airport (TLV) to several destinations in Europe. Destinations in the Gulf region are also being considered for a later stage of network expansion.
According to ch-aviation data,TUS Airways has a fleet of three A320 aircraft, as of June 2025. The Cypriot carrier has undergone significant transformation since its establishment. Originally founded as a regional carrier, TUS Airways operated primarily with turboprop aircraft, connecting Cyprus to nearby destinations across the Eastern Mediterranean region. In 2024, Israeli aviation group Kavey Hofsha acquired a strategic one-third stake in the carrier’s capital. This initial investment was followed by Kavey Hofsha’s complete acquisition of all remaining shares in early 2025.
Crete-based Blue Bird Airways operates a fleet of four Boeing 737-800 aircraft, a fleet that is supplemented at times with wet leased aircraft.
After the launch of this new carrier, which is anticipated by early 2026, Israel will have five commercial airlines. TUS IL will join a domestic airline landscape which includes flag carrier El Al, as well as two established privately-owned operators, Arkia and Israir, and Air Haifa, a startup which has been operating out of the north of the country since the summer of 2024.
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