Minister of Transportation Yisrael Katz signed an Open Skies agreement with the EU on Monday in Luxembourg. The agreement which is to be gradually implemented over the next 5 years, until it goes fully into effect in 2018, should lower prices significantly on flights between Israel and Europe.
Open Skies will allow EU and Israeli airlines to operate direct flights to each others airports, and not be restricted to specific routes or airports.
When first introduced, the plan was very controversial in Israel, as El Al needs to expend a large sum of money on security that European airlines don’t need to, and that would have made it impossible for El Al to compete.
The Israeli government decided to shoulder almost the entire cost of El Al’s security expenses, which should allow the Israeli airline to be competitive.
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