Opening the skies

May 17, 2013

Last week, we highlighted the benefits to consumers that will flow from the injection of competition into the kosher meat market. This week's news is, if anything, even better. Flights to Israel have always been falsely high.

The Israeli government's internal subsidies and the tortuous process for gaining permission for flights have limited the supply and protected existing carriers - a double whammy for consumers. Even if you want to holiday in Eilat, the absence of regular, direct flights makes it more an expression of faith than a mundane decision about finding a place with good beaches.

But now, after eight years of planning, the Open Skies policy will transform Israeli airspace. Even with current fare prices, tourism is growing - a sign of how wonderful a destination Israel is. With more realistic fares, a boom is almost guaranteed; easyJet already fly to Tel Aviv and it seems certain Ryanair will join them. Not only will the other carriers who now fly have to reduce their fares; there will also be more flights, and to more destinations. Good news all round.

Last updated: 1:45pm, May 17 2013