Airlines call end to strike after two-day stoppage

Israeli airlines agreed to end their two-day-old strike Monday, after coming to an agreement with the Finance Ministry to help defray security expenditures borne by carriers.

The deal will allow thousands of passengers stranded by the work action to fly out of, or into, Israel, after two days of chaos for travelers on Israel’s three major airlines. El Al resumed flights after 11 p.m. on Monday and the other airlines were expected to follow suit soon after.

The strike began Sunday in response to the government’s approval of an Open Skies agreement with the European Union, meant to increase competition among carriers, open up European destinations to Israeli travelers, increase tourism, and reduce the cost of air travel for Israelis.

El Al, Arkia and Israir airlines all grounded flights in protest, saying the move would lead to a loss of jobs in the airline industry and the possible closing of Israeli airlines due to increased competition.

As part of the deal ending the strike, Israel’s Finance Ministry will increase spending on security for El Al and other Israeli airlines. The airlines, in turn, are to enact measures increasing security efficiency, and consequently lowering the cost of security expenditures. Security measures cost approximately 500 million shekels (some $140 million) per year.

The local airlines had said the agreement would put them at a disadvantage compared to other European airlines that do not have the same security requirements.

Israeli airlines do not fly to European airports whose security checks do not meet Israeli standards. Unless Israel provides the security at these airports, the local carriers had argued, the European carriers would be able to offer more flights and lower prices under Open Skies than the Israeli companies could supply.

Earlier on Monday, the National Labor Court heard a petition from the Israel Manufacturers Association, which asked the bench to force the airlines back to work. A decision was expected later Monday, but with the end of the strike will likely not be needed.

The strike had been expected to worsen Tuesday after airport workers joined the labor action, which would have led to delays and grounded flights by non-Israeli carriers as well.

The Open Skies agreement, meant to lower the cost of air travel by reducing barriers for outside airlines to operate in Israel, was signed with the European Union last July after more than three years of negotiations, and ratified during Sunday’s cabinet meeting by a vote of 16-3.

Transportation Ministry officials believe the deal will bring about an increase in tourism and open new destinations for Israeli travelers. The agreement allows for all airlines based in the EU to fly directly to Israel, and for Israeli airlines to fly to all destinations in Europe.

“The goal of the reform that we approved today is to lower the prices of flights to and from Israel and to increase incoming tourism,” Prime Minister Benjamin Netanyahu said on Sunday. “I commend Finance Minister [Yair] Lapid and Transportation Minister [Yisrael] 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.”

Gavriel Fiske contributed to this report.