Air Madrid will ask for designated carrier status during bilateral Spanish-Israeli civil aviation talks in mid-July. Air Madrid currently flies two weekly charter flights between Tel Aviv and Madrid.
Air Madrid director of alliances and expansion Rene Weinberg said on a visit to Israel that the request was based on a promise by Minister of Finance Avraham Hirchson when he was minister of tourism to add designated carriers on routes to Israel in order to increase tourism. He said Ministry of Tourism director general Eli Cohen also supported the airline’s request.
Weinberg said designated carrier permit for Air Madrid wouldl boost the number of tourists in Israel from Spain and Latin America, as well as from North America in the future. He added that Israelis would also benefit from the airline’s low priced services.
El Al Israel Airlines Ltd. (TASE: ELAL) and Iberia Lineas Aereas (IBEX:IBLA; IBRLF.PK) are the two scheduled carriers between Israel and Spain under an agreement between the two countries. A few weeks ago, El Al and Aerolineas Argentinas, which operates charter flights on the Israel-Spain route, filed a complaint with the Israel Civil Aviation Authority, claiming that Air Madrid, a charter airline, was operating as if it were a scheduled carrier.
El Al and Aerolineas Argentinas allege that Air Madrid is violating regulations applying to charter airlines by including in its tickets to Israel in international distribution channels, and selling tickets directly rather than through tour organizers. Air Madrid also offers follow-on flights to other destinations.
El Al claims that it contacted the Israel Civil Aviation Authority several times in this matter, but that nothing was done, even though Air Madrid is operating in breach of international civil aviation rules.
Air Madrid replied that it operations comply with all regulations.
Published by Globes [online], Israel business news - www.globes.co.il - on June 12, 2006
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