Israel bans ATRs due to lack of anti-missiles -report

JERUSALEM Feb 20 (Reuters) - Israel's Transportation Ministry has told two small Israeli airlines they will no longer be able to use ATR aircraft since they cannot be fitted with anti-missile systems, a local newspaper reported on Monday.

The Yedioth Ahronoth daily said Arkia and Israir will each have to retire their five ATR propeller planes within two years.

The two carriers mainly use ATRs on their one-hour route between Tel Aviv and the southern resort city of Eilat.

Israel's Transportation Ministry, Arkia and Israir were not available for comment.

Israel has accelerated the installation of anti-missile defences on its airliners due to an enhanced risk of attack by militants using looted Libyan arms.

Jets flown by flag carrier El Al, Arkia and Israir -- on their Boeing and Airbus planes -- are being equipped with a locally made system known as C-Music that uses a laser to "blind" heat-seeking missiles, with a 2013 target for fitting most of the fleet.

ATR is jointly owned by EADS and Aeritalia, now Alenia Aermacchi. Israel's IDB Group owns Israir while apparel company Jordache Enterprises holds 75 percent of Arkia.

(Reporting by Steven Scheer)