Transportation Minister Yisrael Katz has chalked up a victory with the cabinet decision to pass his Open Skies program intended to increase competition and lower the price of visiting Israel as well as improving service on airlines serving routes to and from Israel.

Katz signals his next plan is to target the price of an automobile in Israel, seeking to cut the price of a car by 20%. In line with the government’s hashkafa, he hopes to open the car sales industry to competition. Today, a car dealer enjoys exclusive rights so if one wishes to buy a particular brand vehicle, s/he is compelled to buy it from the single nationwide dealership. Katz plans to move expeditiously and plans to have the bill ready by July 2013, and after it is passed, one will be able to compare prices before buying a car for there will be competition.

Katz also wishes to permit small businesses to import up to 20 vehicles, once again towards increasing competition in the marketplace. “The planned reforms will be broad and serious towards significantly increasing competition and driving prices down for car sales, repairs and parts.”

Katz adds the pressure from the “tycoons, lobby and interest groups will do no good – the reform is going to occur.”

(YWN – Israel Desk, Jerusalem)