EL AL Matmid - El Al Objects to EU Open Skies

Air Transport World:
Israel-EU open skies agreement still on hold (http://atwonline.com/international-aviation-regulation/news/israel-eu-open-skies-agreement-still-hold-0717?NL=ATW-04&Issue=ATW-04_20120717_ATW-04_153&YM_RID=dtoister@pubdef.lacounty.gov&YM_MID=1326772)Implementation of the open skies agreement between Israel and the European Union (EU), which was signed in March, has been delayed to protect Israeli carriers, Israeli tourism minister Stas Misezhnikov told ATW in Vienna Thursday.

The agreement, when finalized, would gradually open up and integrate the respective markets by strengthening cooperation, leading to more direct flights and reduced airfares.

One of the reasons for the approval delay is to protect Israeli-based airlines, especially flag carrier El Al Israeli Airlines, which objected to the agreement citing economic concerns.

<snip>

would appreciate explanation of what this agreement is.

surprise, surprise.

would appreciate explanation of what this agreement is.

According to Ynet:
Israel, EU to sign 'open skies' treaty (http://www.ynetnews.com/articles/0,7340,L-4206708,00.html)Israel Joins EU aviation zone, opening new destination, more job opportunities and cheaper flights

<snip>

As a result of the agreement, all EU airlines will be able to operate direct flights to Israel from anywhere in the EU, while Israeli carriers will be able to operate flights to airports throughout the EU.

The EU-Israel air transport market will be opened gradually so that by the start of the summer season in 2017, the market would be fully open with no restrictions on the number of weekly flights between Israel and the EU.

<snip>

As well as gradually opening up the respective markets, the agreement also aims to integrate Israel into a wider Common Aviation Area with the EU. Israel will implement regulatory requirements and standards equivalent to EU aviation rules in areas such as aviation safety, environment, consumer protection, including passenger rights, air traffic management, economic regulation, competition issues and social aspects.

<snip>

from Harretz
http://www.haaretz.com/roundup-el-al-returning-to-the-nation-s-embrace-1.451154

"El Al the private airline, we barely knew ye:
El Al was privatized in 2003, but it may find itself re-nationalized because of the airline's sorry financial condition in today's challenging business environment and the ramifications of the airline's sorry financial condition's for Israel's Open Skies treaty with Europe, which hasn't been signed yet. Ambassador Andrew Standley, head of the EU delegation to Israel, urged Israel's transport minister in a meeting late last week that Israel should sign the agreement already, noting that 60 percent of the aviation traffic to and from the Holy Land is with members of the European Union"

Haaretz:

Budget airline Ryanair expresses interest in entering Israeli market
Says Israel must ratify open-skies aviation pact. (http://www.haaretz.com/business/budget-airline-ryanair-expresses-interest-in-entering-israeli-market-1.452902)
European low-cost airline Ryanair has expressed an interest in offering flights to Israel and is calling on Transportation Minister Yisrael Katz to sign the so-called open-skies aviation policy with the European Union.

Israel has already agreed in principle to the open-skies pact - which is expected to greatly increase flights offered by European airlines - but has been delaying a final decision over concerns about its impact on local air carriers, notably El Al Israel Airlines.

Ryanair has suggested that these concerns could be addressed by the Irish-based carrier committing not to fly to airports in Europe that El Al serves for a period of three years. Ryanair rejects El Al's contention that the open-skies agreement - which will give the Israeli carrier opportunities to fly to destinations of its choice in the European Union - will lead to El Al's collapse.

<snip>

Looks like the agreement was signed today

http://www.ynetnews.com/articles/0,7340,L-4262219,00.html

Looks like the agreement was signed today

http://www.ynetnews.com/articles/0,7340,L-4262219,00.html

It can't come soon enough. It will be very interesting to see how Israeli airlines end up doing with the compensation rules - i.e. if a flight is delayed by more than a certain number of hours, they have to compensate pax.

It can't come soon enough. It will be very interesting to see how Israeli airlines end up doing with the compensation rules - i.e. if a flight is delayed by more than a certain number of hours, they have to compensate pax.

I doubt they will do anything of the sort until they are forced to by courts or the government.

in other (ynet)news...
"El Al has filed an official objection to Israel's "open skies" deal with the EU, which was signed Monday"
Oh well... a day too late...
they are so asleep at the wheel its not even funny.

in further news :
http://www.israelnationalnews.com/News/News.aspx/153211#.T0utE4fxqv8
The Histadrut Threatens to Close Israel's Skies
"The Histadrut charges that the Civil Aviation Authority and Ministry of Transportation signed the "open skies" agreement without negotiating with employees, and without regard to the implications that signing the agreement would have on the workers.

Union officials say if negotiations with officials do not yield "complete results" within two weeks they will begin implementing work disruptions and imposing downtime on Israel's airlines."

Negotiations of what? Again its too late. How can the MoT negotiate anything with them after that fact that the deal is signed?

Stupid. This will ultimately lead to more jobs - both from increased service to Israel and the ground crews to support it and overall increased tourism. A friend recently wanted to visit Tel Aviv from London but then didn't come because the airfare was $750. If the airfare had been $400, she would have come and spent 2-3 nights in a hotel plus meals, sightseeing etc. Not to mention the increased profitability of Israeli companies who travel abroad and are currently getting gouged on travel costs.

Is what is good for El Al also what is good for Israel?

Is what is good for El Al also what is good for Israel?

Clearly not. My impression is that Israel has two sets of economies. A very dynamic and entreprenurial sector - especially in high-tech. And then a sector which has or had government connotations. I believe the head of the central bank of Israel once said that Israel's economic structure resembled more eastern Europe than western europe. But things seem to me on the move - joining OECD, open skies...

Is what is good for El Al also what is good for Israel?

Thats an interesting question. I would answer yes.
In general, certain companies are tapped as being "strategic assets" by their home government and the country and I do think that EL AL fits that bill.

BUT....like General Motors in the US, who also believed that they were "strategic asset", they take the position for granted. I think EL Al is out of touch with certain segments of their customer base and this Open Skies thing maybe the spark that lights the fire underneath them and gets them going again.
I do think in the end that they will be nationalized. I dont think that they will be able to compete and pay for the extra securiy costs that LCC wont have to deal with.