The Israeli government has approved the European-Mediterranean Sea ("Open Skies") aviation agreement between the State of Israel and the European Union and its member states.
Israeli Prime Minister Benjamin Netanyahu said "the goal of the reform is to lower the prices of flights to and from Israel and to increase incoming tourism. »
"I commend Finance Minister Lapid and Transportation Minister Katz for working to pass this reform, which has been discussed for many years. We will continue to advance reforms to lower the cost of living and increase the efficiency of services to Israeli citizens," he added.
The Open Skies agreement is meant to reduce restrictions on European carriers for using Israeli airspace, thus increasing competition. It would expand the number of flights between Israel and Europe and allow Israel to become a layover hub. Now it is a final stop.
Tourism Minister Uzi Landau praised the deal in a statement saying "the cabinet took the right decision for the citizens of Israel, for Israeli economy and for tourism in Israel."
Finance Minister Yair Lapid said the "agreement is right for the public, the economy and tourism," but stressed that he will relate to Israeli airlines' heavy security costs
As a result of the agreement, Israel's three airlines -- El Al, Arkia and Israir – went on strike on Sunday as they are opposed to the deal, saying it would result in widespread layoffs.
The strike ended on Monday after an agreement was reached with the government. The Finance Ministry said it agreed to address the airlines' concerns over security costs derived from deal. The Histadrut labor union said it would drop its plan to halt flights out of Tel Aviv’s Ben-Gurion international airport on Tuesday.
Israeli daily Ma'ariv wrote that "the government acted correctly when it preferred macro-economic considerations over that of the airlines, which have hitherto benefitted from the defensive wall provided by the state."
"The Israeli airlines will need to adapt themselves to a world in which the low-cost companies are the most profitable."
"In order to ensure fair competition with the European competitors, the government must fully cover the Israeli airlines security costs," while making sure that the security provided is both efficient and cost-effective. »
Israel's small fleets and security costs make it hard to compete with other airlines.
Yisrael Hayom daily believes that the agreement will not only bring more tourists to Israel but will also compel the Israeli airlines, El Al in particular, to become more efficient, "which is necessary for both it and the Israeli economy."