Minister of Tourism Avraham Hirchson announced last week that the government would grant Israir second designated carrier status on the New York-Tel Aviv route for 24 months.
In a press conference Hirchson said that the decision was backed by legal opinions provided from the Ministries of Transport, Justice, and Finance. The New York route is one of the most profitable in the local market.
Tourism Minster Avraham Hirchson said that the Israir license would be good for two years, during which time the need for a second carrier on the route would be evaluated.
Israir was founded in 1996 to fly scheduled domestic flights between Tel Aviv and Eilat. Israir, the country's second largest carrier, has also been flying internationally between Israel and major destinations in Mediterranean Basin, Europe, and New York .
Israir operates a fleet of Boeing 767-300 and 757 aircraft and ATR'S. In addition, the company, which employs a staff of more than 350 employees, offers special charter flights and a variety of other tourism both in Israel and elsewhere where the airline flies. Israir carried more than 580,000 passengers during 2004.
Up to now only El Al Israel Airlines has had the license for regular flights, and the airline objected. El Al said the decision "constitutes a blatant violation of the government's commitment toward the company and sends a negative message,"
Following the decision made by Hirchson, Israir announced that it planned its inaugural scheduled flight to New York as a designated national carrier in a few days, after obtaining the necessary permits from the US. These permits include a diplomatic memorandum from the US, because designated carrier status is part of bilateral diplomatic relations.
Allowing Israir to operate regular passenger flights will offer competition in ticket prices and increase tourism to Israel, said a spokesman for the Ministry of Tourism. The spokesman added "This is a very strong statement of the Israeli economy and the aviation market".
