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Security concerns may halt Denmark-Israel services

Analysis

Security issues might halt flights between between Copenhagen and Tel Aviv, after Israeli authorities have reportedly taken issue with Denmark's refusal to allow Israel to station armed security personnel to carry out independent security checks at Copenhagen Kastrup Airport, Denmark's main international hub. The issue has only arisen following Arkia Airlines' announcement that it plans to launch Tel Aviv-Copenhagen charter service in early Jul-2011.

A second security requirement for armed security personnel patrolling designated "Israeli security zones" at the airport has also reportedly been rejected.

A ban on flights to Israel would affect already struggling Danish LCC, Cimber Sterling, which launched three times weekly Copenhagen-Tel Aviv service in Nov-2010. Cimber cautions passengers travelling to and from Tel Aviv that special regulations apply to the check-in process and they will be asked a number of security questions. It also warns that security upon departure from Israel has also been increased.

Shares in Cimber Sterling were down 8.6% on Monday.

Selected LCC share price movements (% change): 27-Jun-2011

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