Wednesday, August 1, 2012

World Watch Daily :: Israel signs 'open skies' agreement with EU




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 Israel signs 'open skies' agreement with EU
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Israel signs 'open skies' agreement with EU

Agreement likely to decrease flight prices • Gradual 5-year implementation of deal to begin within months • Upon full implementation, there will be no restriction on number of flights between Israel and European destinations.

Ilan Gattegno

Will an "open sky" deal with Europe benefit Israeli carriers and travellers? | Photo credit: Getty Images

After more than three years of negotiations, Israel and the EU signed an "open skies" agreement on Monday to facilitate more flights to and from European countries at reduced prices.

The agreement was signed by Civil Aviation Authority Chairman Giora Rom and EU chief negotiator Klaus Gail, and will be implemented over a period of five years, beginning in a few months time.

The gradual implementation of the agreement is designed to provide time for aviation companies to prepare themselves for more competitive business. Each year, until the completion of the contract, each European destination will have seven additional weekly flights from and to Israel. In a small number of central European airports that typically serve as connection hubs, where extensive traffic to and from Israel already exists, only three weekly flights will be added each year. This could grant the Israeli airlines some degree of protection from loss of business during the adjustment period.

Upon implementation of the agreement, an aviation industry exemption from the Antitrust Law will be expanded to eliminate the requirement of Israeli carriers to submit in advance code-sharing agreements with foreign aviation companies participating in the "open skies" deal (relating to flights to both the U.S. and Europe).

Transportation and Road Safety Minister Yisrael Katz said on Monday that "the agreement will make Israel an integral part of the EU in relation to the aviation industry. I expect to see significant drops in the cost of flights for the benefit of all Israeli citizens."

According to Katz, the agreement will clear the way for additional flight destinations, increase the influx of tourists and provide thousands of new jobs for Israelis.

Tourism Minister Stas Misezhnikov, who supported the deal throughout and worked to finalize it, said that "this is a vital move, but the government must also find a way to ensure the stability of Israeli carriers within the framework of the agreement."

A spokesman for the Israel Hotel Association said the deal would "contribute to healthy competition in the skies and to increase tourism in Israel."

A spokesman for Israir, Israel's third-largest airline, said that "in light of the regulation process over the past few months, Israir has been preparing itself for an 'open skies' policy. Israir believes that the company will be able to leverage its relative advantages with the onset of the new regulatory changes."

Spokesmen for El Al and Arkia, the two leading Israeli airlines, said the companies were reviewing the agreement.

After Katz instructed Rom in March to sign a memorandum of understanding that preceded the final agreement, El Al employee union head Asher Edri said that "we expect the minister to keep his promises and prior to signing the agreement make sure it provides adequate protection to our aviation companies and their employees.”

At that time, senior Israeli tourism officials claimed that additional flights to Israel would not benefit the country if the hotel industry was unprepared to accommodate the additional tourists. “Tourism to Israel will increase only when there are more hotels, 5,000 more rooms and more reasonable prices,” an official said.

Lior Raviv, managing director of the Israeli hotel chain Isrotel, said he supported the agreement. “We have the means to accommodate all the tourists who come to Israel. They just need to come. In the first quarter of 2013, we will open two new hotels, Royal Beach Tel Aviv and Spa Hotel Kiryat Anavim, which will add 400 rooms to the rooms already available in our 15 hotels throughout the country,” Raviv said.

According to the French news agency AFP, talks concerning the deal began in December 2008. An EU statement quoted by AFP in March said, “The EU-Israel air transport market will be opened gradually so that by the start of the summer season in 2017, the market would be fully open with no restrictions on the number of weekly flights between Israel and the EU.”
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