Photo: Ministry of Transportation in Israel Israel and the United States signed an amendment to the 2010 aviation agreement, which regulates a significant expansion of aviation rights for cargo flights. The protocol was signed yesterday (March 11, 2020) by Transportation Minister Miri Regev and US Ambassador to Israel Mike Huckabee, in the presence of Prime Minister Benjamin Netanyahu.
At the center of the amendment is the granting of the "seventh freedom" in the field of cargo flights, an advanced aviation right that allows cargo companies to transport goods between any of the countries and third countries, even when the flight does not depart from the company's home country.
For example, American companies will be able to transport cargo between Israel and other countries, and Israeli companies will be able to transport cargo between the United States and other countries. The arrangement applies to cargo flights only and does not include passenger flights.
This right is considered one of the most advanced rights in the field of aviation agreements, and is expected to significantly expand the operational options of cargo companies, increase competition in the industry, and strengthen Israel's position as a regional center for air trade and logistics.
The practical significance of the agreement is the removal of historical barriers that have so far limited the activities of Israeli cargo companies. Until now, an Israeli cargo plane was required to take off from or land in Israel as part of operating international cargo lines. Under the new arrangement, Israeli companies will be able to operate direct cargo lines between foreign countries, for example between Europe and the United States, without the plane being required to transit through Israel. This move is expected to strengthen the competitiveness of Israeli companies in the global logistics market and to expand their activities internationally.
Also present at the signing ceremony were Ministry of Transportation Director General Moshe Ben Zaken, Civil Aviation Authority Director Shmuel Zakai, Arkia Director General Oz Berlowitz, U.S. Embassy Economic Counselor Johann Schmonsees, and Embassy Spokesperson Christian James.
In addition, the United States approved the continuation of Arkia's operations in the United States under a "wet lease" method, operating one company's aircraft and crew for another company, for another year, until April 2027.
Minister of Transportation Miri Regev: "The protocol we signed changes the rules of the game in the air cargo market and removes barriers that have limited the activities of Israeli companies for years. Expanding cargo rights will strengthen Israel's position in the global logistics market, ensure continuity of supply to the State of Israel even during challenging times, and deepen economic cooperation between the countries."
Ministry of Transportation Director General Moshe Ben-Zaken: "This is a strategic move that will allow Israeli companies to operate with greater flexibility in international markets and will contribute to deepening economic and commercial ties between the countries."
Arkia CEO Oz Berlowitz: "The United States is a key strategic target for Arkia. Approval of the agreement with the Americans will allow us to continue operating routes to North America together with our aviation partners using wide-body aircraft and gives us the time needed to organize and continue the process of equipping Arkia with wide-body aircraft, a process that is currently underway. This decision will allow us to continue investing in expanding operations between Israel and the United States and offer the Israeli public a competitive alternative on this important route. I would like to personally thank Minister of Transportation Miri Regev, US Ambassador to Israel Mike Huckabee, Director General of the Ministry of Transportation Moshe Ben Zaken, and Director of the Civil Aviation Authority Shmuel Zakai, for their support, listening ear, and great commitment to Israeli aviation and Arkia in particular."