EL AL Israel Airlines is attempting to foil an Israeli Government decision to create a new regional airline which will operate scheduled flights to destinations in the Middle East.
The decision to create the carrier, made more than two years ago, but not implemented, was revitalised recently by organisations which plan to compete for the new licences. Israeli private airline Arkia, which operates scheduled domestic flights and international charter flights, sees itself as the "natural" choice to implement the new regional services.
Government-owned El Al is concerned that this renewed interest will result in implementation of the Government's decision.
"There is no point in granting regional rights to a new or existing airline while we are capable of operating all these flights," says a senior El Al source.
Arkia, the country's second-largest airline after El Al, operates a fleet of ten de Havilland Dash 7s and three Boeing 737-200s. Flights to Amman, Jordan and Larnaca, Cyprus, are flown under subcontract for El Al.
The Israeli flag carrier plans to fight to retain its regional rights, claiming that a change in policy will be damaging to it.
Source: Flight International
