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Israeli market set to open up under new open skies agreement with EU

Analysis

Israel's aviation market is set to open up to a much higher level of competition following the signing of an Israel-EU open skies agreement. The eighth and final round of negotiations between Israel and the EU took place last week, leading to an agreement which will gradually liberalise over the next five years air links between Israel and the 27 nations currently within the EU.

Israel's three main carriers have voiced concerns at the potential effects the new open skies agreement could have, with El Al in particular vulnerable to the prospects of increased competition. A rise in low-cost carrier competition could also follow relaxed aviation regulations, further pressuring the Israeli carriers.

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