Following the historic discussions between Israel and the United Arab Emirates in Abu Dhabi this week, Israel’s Foreign Ministry Director-General Alon Ushpiz said that Israel and the UAE hope to establish direct flights between the two countries within weeks.

Etihad Airways, the national airline of Abu Dhabi, didn’t waste any time and has already begun offering tickets to its flights in Israel on Tuesday. Etihad, a world-acclaimed airline with a fleet of 100 aircraft, is represented in Israel by TAL Aviation Ltd. in Ramat Gan. UAE’s other world-acclaimed airline, Dubai-based Emirates, is even larger, with a fleet of 270 aircraft.

However, since no direct flights yet exist between Israel to Abu Dhabi, from where Etihad operates flights to 80 worldwide destinations, flights for Israelis are not yet a realistic proposition. Only Israelis with foreign passports or business travelers with special permits can currently travel from Israel to the UAE.

When an agreement is signed allowing direct flights between the two countries, Etihad and Emirates will pose a real competition risk to El Al, Globes reported.

“The entry of airlines from the UAE into Israel represents a great danger to Israeli aviation, and particularly to El Al,” a senior industry source told Globes.

“Even before the crisis and before the change that will arise from the signing of the agreement with the UAE, the Israeli airlines lost money when the Open Skies policy came into full effect.”

“In contrast to Israeli airlines, the governments in the Gulf and the UAE throw money at various industries including aviation to encourage all strata of the economy. They set up amazing companies, innovative airports and the low price of fuel serves them well.”

“The aim they set for themselves was to conquer the world and grow their market share in aviation in other countries as well. The hubs they have at their airports link every continent. It’s an excellent location for flights to Australia, to the Far East, and to Africa, which means that El Al, and airlines like Turkish Airlines which fly to these destinations, should be worried, not just about the excellent service of the UAE airlines, but also about the fares they offer. I have no doubt that Etihad and Emirates are capable of taking over the Israeli market for flights to the Far East.”

According to a Calcalist report, an Etihad flight from Israel to Thailand with a connection in Abu Dhabi will cost $800 and a flight to Australia in coach will cost around $1,600, according to TAL Aviation.

The industry source added that Emirates and Etihad could pose a risk to El Al’s cargo services as well. “In cargo, to date, no Israeli airline has operated flights to the Far East, and cargo is mainly carried on passenger planes. The entry of these two companies could generate competition here too, and also open up new options for cooperation. In normal times 70% of cargo is flown on passenger planes and as passenger traffic grows, including from these two airlines, they can also cut into the cargo sector.”

(YWN Israel Desk – Jerusalem)