On the early of Sep. 1994, President Yasser Arafat issued a Presidential Decree No. 87/94 to establish the Palestinian Civil Aviation Authority and appointed Mr. Fayez Zedan as the chairman. Mr. Zedan was assigned to initiate the organizational infrastructure for aviation in Palestine including the formation of the structural and executive administrations of the the Aviation Authority, building airports, establishing and operating the Palestinian Airline Company.

The recently opened Gaza Airport offers scheduled flights to nearby countries. Direct air travel is also available through Lod Airport.  Jordan and Egypt have open borders with palestine. By sea, Palestine can only be reached through ferries from Haifa, Israel. There are regular ferries to/from Haifia, Greece, Cyprus, and Egypt.

The Palestinian National Authority (PNA or PA) is a semi-autonomous state institution nominally governing the bulk of the West Bank and the Gaza Strip (which it calls "the Palestinian Territories"). It was established as a part of Oslo accords between the PLO and Israel. The Palestinian Authority has control over both security-related and civilian issues in Palestinian urban areas (called in Oslo accords "Area A"), and civilian control over Palestinian rural areas ("Area B").

The Oslo accords did not explicitly deal with the future of the PA, but there was an unwritten understanding on both sides that it would become the basis of an independent Palestinian state in the process of the final settlement.

The Palestinian Authority enjoys so far an international recognition as the organization representing the Palestinian people (albeit a limited one). It has an observer status in the United Nations, and receives considerable funds as aid from the European Union, the United States and Israel. The Gaza International Airport was built by the PA near Gaza, but operated for only a brief period before being shut down by Israel, following the outbreak of Palestinian violence against Israel in 2001. A sea port was being constructed in Gaza (see below).

The PA maintains official uniformed armed services ranging from 40,000 to 80,000-man(1) employing armored cars and whose members carry automatic weapons. Officially termed a "police force", it is in reality something in between a militia and an army. This is a violation of the Oslo Accords which limit the PA to a police force of 30,000 without any para-military or military groups or formations.

Many Palestinians are dependent on access to the Israeli job market. During the 1990s, Israel however began to replace Palestinians with foreign guest workers. They were found to be economical and also were useful as a means limiting dependence on Palestinians as a source of cheap labor due to security concerns. This hurt the Palestinian economy, reducing the popularity of the PA. - from Wikipedia.org