Lufthansa relaunched flights between Tel Aviv and Munich on Sunday, saying there was ample demand despite the slowing economy.

Lufthansa said it will operate the flights four times a week with Airbus A340-300 planes, adding to the two flights a day it already offers between Tel Aviv and Frankfurt.

"The market needs the capacity," Joachim Steinbach, the carrier's vice president for Middle East and Africa, said, noting that its load factor between Israel and Germany in 2008 was 90 percent.

"There was a window of opportunity to make the investment now and show our commitment to the Israeli market," he said.

Lufthansa, one of the largest foreign airlines operating in Israel, had halted flights to and from Munich in 2003 largely due to a wave of Palestinian suicide bombings that badly damaged tourism in the country.

As Munich grew into a large hub, the carrier tried to reinstate the flights in 2006 but was rebuffed by the Israeli government.

Israel and Germany renegotiated a new transportation deal earlier this year giving Israeli flag carrier El Al more slots in Germany and Lufthansa permission to fly to Munich.

Coinciding with the new flight to Munich, El Al on Sunday announced a USD$289 seat sale to compete with Lufthansa, which charges USD$309.