The three main Israeli airlines expressed concern about the potential impact of the new “open skies” agreement, with El Al particularly vulnerable to the prospects of increased competition. Increased competition from low-cost airlines could also result in the easing of aviation regulations and additional pressure on Israeli airlines. The Department of Foreign Affairs, in collaboration with the Department of Transport and the Ministries of Commerce, negotiates agreements with foreign governments that form the framework of commercial air service. The most liberal of these civil air transport agreements, the so-called “open skies” agreements, have offered the possibility of extending international passenger and cargo flights to and from the United States. They stimulate economic growth by stimulating travel and trade, increasing productivity and stimulating quality jobs. This is what open skies agreements do by removing state interference in airlines` commercial decisions on routes, capacity and pricing, allowing airlines to offer consumers and shippers a more affordable, convenient and efficient air service. JERUSALEM, Oct 8 (Reuters) – Israel signed an air transport agreement with Jordan on Thursday that allows flights across Israeli airspace from the United Arab Emirates and Bahrain. But despite the potential negative effects that the open skies could have on its national airlines, Israel will benefit from increased tourism and increased economic growth. The possible drop in the prices of services between Israel and the EU, due to the increase in capacity in the market, will also make air traffic more accessible to those wishing to travel between Israel and Europe. If El Al, in particular, suffers from increasing competition, it is possible that the Israeli government is prepared to increase its financial support to the airline, given the benefits that the rest of the nation must see from the “open skies” agreement. Like similar agreements with other EU neighbours, the gradual opening of the market to more direct flights from Israel to more destinations in Europe has led to lower prices, while reducing airfares to Israel for European travellers. An increase in tourism in both directions creates additional jobs and economic benefits on both sides. At the same time, the gradual implementation of the agreement between 2013 and 2018 has given airlines on both sides enough time to prepare for increased competition.
This list identifies all current open ski partners who: The United States has implemented outdoor air travel with more than 125 partners. These include several important agreements dealing with rights and commitments with several aviation partners: the 2001 Multilateral Agreement on the Liberalization of International Air Transport (MALIAT) with New Zealand, Singapore, Brunei and Chile, to which Tonga and Mongolia subsequently joined; the 2007 Air Services Agreement with the European Union and its Member States; 2011 agreement between the United States of America, the European Union and its Member States, Iceland and Norway. The United States maintains more restrictive air transport agreements with a number of other countries, including China. The creation of an open-air agreement between Israel and the EU will inevitably have a considerable impact on the state of the Israeli aviation industry, particularly on the national airline El Al. As El Al allows for increased competition on international routes, it will be forced to review its operations and strengthen the improvement of its network, fleet and product.