Israel and the EU have signed a memorandum of understanding (MOU) on an open skies agreement. The agreement will come into effect gradually until the summer of 2017, when there will be unrestricted air travel between Israel and the EU.
European Commissioner for Transport Siim Kallas said that the agreement was ... very important for further strengthening the overall economic, trade and tourism relations between Israel and the EU, adding, "Israel is a key partner for the EU and the agreement will strengthen the aviation links between the two partners and establish a high level of regulatory convergence."
Minister of Transport Israel Katz said that the MOU was an unprecedented achievement for Israel, which would enable it to integrate with the global air space to boost incoming tourism, create jobs, and strengthen the economy.
The Ministry of Transport said that the MOU would be followed by the initialing of an agreement, subject to Katz's approval. If he approves it, the agreement will go to the cabinet for approval, and the final agreement will be signed within a few months.
Katz will meet with Israeli airlines, including El Al Israel Airlines Ltd. (TASE: ELAL), Arkia Airlines Ltd., and Israir Airlines and Tourism Ltd. to hear their objections to the agreement.
At the same time, understandings were reached with the Antitrust Authority to cancel arrangements that discriminate Israeli airlines, so that they can compete on equal terms with European carriers.
Katz ordered Israel Civil Aviation Authority director Giora Rom to expand the exemption for cooperation agreements between Israeli and foreign airlines, in order to widen the Israeli carriers' maneuvering room. Katz asked that the broader exemption come into effect before the open skies agreement is initialed.
Passenger traffic between the EU and Israel accounts for 60% of Israel's traffic by scheduled carriers. There were seven million incoming and outgoing passengers between Israel and the EU in 2011.
The EU open skies agreement will supersede bilateral agreements between Israel and EU member states, such as Austria, Belgium, the Czech Republic, Cyprus, France, Germany, Greece, Hungary, Italy, Latvia, the Netherlands, Poland, Romania, Spain, and the UK.
Published by Globes [online], Israel business news - www.globes-online.com - on March 25, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012