Israel’s Cabinet yesterday approved an open skies agreement that aims to boost airline traffic to and from Europe, defying a strike by workers at El Al and two smaller airlines who fear for their jobs due to higher competition from foreign airlines.
The reform aims to lower rates
Supporters of the open skies aviation deal – which will go into effect next April – say its relaxation of restrictions and quotas on flights between Israel and European Union countries will increase competition and help Israel’s economy.
“The reform... aims to lower air fares to and from Israel and boost incoming tourism,” Prime Minister Benjamin Netanyahu said as the Cabinet approved the deal by a 16-3 vote.
To help airlines El Al, Arkia and Israir prepare for the rise in competition, the agreement will be gradually phased in over the next five years.
“The open skies agreement is the only way for El Al to economise at long last and to change its approach so that it can compete in the tough world market,” Transport Minister Yisrael Katz told Israel Radio.
A major complaint of Israel’s airlines is high security costs compared to foreign competitors but the government said it would cover 80 per cent of this. El Al spent $33 million (€25 million) on security in 2012.
Ofer Eini, head of Israel’s Histadrut labour federation which overseas hundreds of thousands of public sector workers, said the agreement could leave Israel’s airlines struggling to compete and could cost 17,000 jobs.
Eini had called on the cabinet to delay its vote by a month to allow further discussion on adapting the plan.
Workers at El Al, Arkia and Israir started an open-ended strike at 5am (0200 GMT) but the airlines brought forward most departures so that outgoing passengers could leave Israel. Incoming flights and foreign airlines were not affected.
El Al said it had initially cancelled all departures from Tel Aviv planned until 9pm but called on passengers to keep updated on the status of flights.
“We support competition and we support open skies, but in this form it brings about the destruction of the Israeli airline companies,” said Asher Edri of El Al’s workers’ union.
The Histadrut said the strike would be expanded to include all airport workers starting 6 am tomorrow.