"I am not talking as CEO of El Al, but as an Israeli for whom Israeli aviation is critical. The open skies agreement must be based on clear definitions before the new policy is implemented," said El Al Israel Airlines Ltd. (TASE: ELAL) CEO Eliezer Shkedi said at the Israel Tourist and Travel Agents Association conference in Eilat.
"Open skies should be a careful, cautious, sagacious, and proportionate move, but what is being presented now is liable to cause Israeli aviation to crash," Shkedi said. He added that an agreement should only be signed after an equitable and suitable infrastructure is built at Ben Gurion Airport.
"Israel has only one airport with one runway, and implementing open skies under these conditions is irresponsible," he said.
Ministry of Transport director general Noaz Bar Nir told "Globes" that he rejected Shkedi's sweeping claim. "When we enter the playing field with the European market, we cannot dictate the rules of the game, and we should recognize the limits of the edict.
"Besides the interests of the airlines, there is a national interest - the larger number of incoming tourists, and the ability of Israelis to fly at lower prices. There is no reason for a flight to Europe or North Africa to cost €200 and a flight from Europe to Israel to cost $700. The lack of competition harms the economy."
As for Shkedi's call for a gradual introduction of open skies, Bar Nir said, "With the launch of open skies, we took into account all the factors and consequences of the measure, including proportionality."
Published by Globes [online], Israel business news - www.globes-online.com - on February 1, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012