ISRAELI airline workers are striking, with hundreds burning tyres outside government offices in protest against the approval of an Open Skies deal with European carriers.
Prime Minister Benjamin Netanyahu says the goal of the reform is to reduce the costs of flights to and from Israel and to increase incoming tourism.
"We will continue to advance reforms to reduce the cost of living and increase the efficiency of services to Israelis," he said in a statement on Sunday.
Netanyahu said the finance and tourism ministers would have 45 days to address questions raised during discussions which took place before the deal was approved by the cabinet.
Israel's three airlines - El Al, Arkia and Israir - are bitterly opposed to the arrangement, saying it will trigger widespread layoffs.
"Implementing the Open Skies agreement in its current format will have severe ramifications which would fatally and irreversibly harm civilian aviation in Israel," Histadrut trade union chairman Ofer Eini said in a letter to Netanyahu.
Staff of El Al and charter firms Arkia and Israir stopped work at 5am (1200 AEST) on Sunday but did not say how long the stoppage would last.
As ministers arrived for the weekly cabinet meeting, more than 500 angry demonstrators burst through security barriers and tried to block their way into Netanyahu's office, police said.
Several tyres were set alight, sparking heated scuffles with officers and riot units.
Waving Israeli flags and banners demanding "Aerial justice," they handed out flyers saying: "Israel's skies are shutting out Israeli airlines."
"International airlines that don't add Israel to their (airline) alliances because of the Arab boycott are about to take over Israeli skies," it said, warning the deal "does not allow Israeli airlines to compete equally with European airlines".
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