El Al waived exclusivity on foreign routes in exchange for government undertaking

The decision will qualify El Al to receive a significant financial boost from the Israeli government to cover rising security expenses
 
Israel's government agreed last week to pay 80% of the security costs of the country's airlines, up from 50% at present. The decision will qualify El Al to receive a significant financial boost from the Israeli government to cover rising security expenses in exchange for it allowing smaller rivals Arkia Israel Airlines and Israir Airlines access to previously monopolized long-haul routes.
 
El Al's security costs run at about $90 million a year. "El Al welcomes the government's decision by which it expands its policy of opening the skies to competition while increasing its financing of security costs of Israeli airlines to 80 percent," it said in a statement.
 
A spokesman for El Al added that "El Al believes that the government's decision will allow the Israeli carreirs to cope with the expanding supply of seats and intensifying competition with the foreign carriers".
 
Avi Nakash, one of Arkia's controlling shareholders, said he welcomed the government's move and added that Arkia will seek to add regular lines to various destinations in Europe, the U.S. and the Far East.