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Israel: Open skies agreement with E.U. to increase competition has to wait

 |  December 13, 2012

Israel’s Prime Minister Benjamin Netanyahu has decided to defer the signing of a final open skies agreement with the European Union, which was scheduled to occur on December 20. PM Netanyahu explained that the decision is due to an attempt to avoid making major decisions during election period. The initial agreement was signed last July in efforts to increase competition for Israel’s aviation industry. It is also part of an effort to keep air travel costs low for consumers. The Ministry of Transport has said that the deal would be gradually implemented over the next five years so airlines can prepare for the new “competitive structure” of the sector. The agreement would also grant exemption to the aviation industry under the Antitrust Law and would include a provision that eliminates the need to submit for Antitrust Authority approval code-sharing agreements between carriers around the globe.

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