Israel and the European Union have finalized negotiations on a comprehensive aviation agreement during a final round of negotiating in Tel Aviv on March 22, 2012.

According to a press release, the agreement will gradually open up and integrate the respective markets, strengthen cooperation and offer new opportunities for industry, including airlines, and consumers.

Following eight rounds of negotiations since December 2008, the two sides have agreed to develop a common aviation area between Israel and the EU based on common rules. It is expected that the agreement will offer more travel opportunities, more direct connections and economic benefits for both sides.

As a result of the agreement, all EU airlines will be able to operate direct flights to Israel from anywhere in the EU and Israeli carriers will be able to operate flights to airports throughout the EU. The EU–Israel air transport market will be opened gradually so that by the start of the summer season in 2017, the market will be fully open with no restrictions on the number of weekly flights between Israel and the EU.

Based on the experience of similar agreements signed with other EU neighboring countries, the gradual opening of the market is expected to encourage a larger number of direct flights from Israel to more destinations in Europe at lower prices than today while also reducing flight prices to Israel for European travelers. Higher volumes of tourism in both directions are expected to create additional jobs and economic benefits on both sides. The gradual implementation of the agreement will give sufficient time for carriers on both sides to prepare for increased competition.

In parallel to gradually opening up the respective markets, the agreement also aims to integrate Israel into a wider Common Aviation Area with the EU. Israel will implement regulatory requirements and standards equivalent to EU aviation rules in areas such as aviation safety, environment, consumer protection, including passenger rights, air traffic management, economic regulation, competition issues and social aspects.

The agreement will replace bilateral air services agreements between EU Member States and Israel.

The agreement will be a further step in creating a wider Common Aviation Area between the EU and its neighbours. Similar comprehensive aviation agreements with neighbouring countries have already been negotiated with the Western Balkan countries, Morocco, Jordan, Georgia and Moldova and negotiations are ongoing with Ukraine and Lebanon and are planned to soon start with Azerbaijan and Tunisia.