Israel's transport ministry on Tuesday named Israeli airline Arkia as a "designated carrier" on flight routes between Tel Aviv and Paris.

Arkia Israeli Airlines, a subsidiary of Nakash Group of America, will become the second Israeli carrier to offer regular scheduled flights on the Tel Aviv-Paris route, breaking the monopoly of Israeli flag carrier El Al.

Arkia is a smaller rival to El Al and operates mainly domestic routes although it offers charter flights to some European countries.

Last month, Israel's government agreed to pay 80 percent of El Al's security costs in return for dropping its exclusivity on routes, allowing rival Israeli carriers to expand their routes to destinations in Europe, the Far East, and North America.

Israel and the European Union recently signed a preliminary "open skies" agreement that would greatly ease restrictions on air travel between Israel and European states.

Israel's Tourism Ministry has long pushed for an open skies policy as a means to increase competition, which would lead to lower airfares and more tourists.