Israel Antitrust Authority Fines El Al Nearly $30 Million
Translated & summarized from Mignews by baba
Israel's Antitrust Authority plans to fine El Al airlines 109.6 million shekels for allegedly abusing its monopoly by denying Arkia access to aircraft maintenance hangars during the war. Two executives may also face personal fines. El Al denies the charges, stating it complies with the law and has assisted Arkia. The authority will hold hearings before a final decision.
The story in 6 lines · by baba
- El Al faces a potential 109.6 million shekel fine from Israel's Antitrust Authority.
- The airline is accused of denying Arkia access to aircraft maintenance hangars during wartime.
- Two El Al executives could also face personal fines of up to 548,000 shekels each.
- The Antitrust Authority cites El Al's monopoly position in hangar services.
- El Al denies all allegations and states it complies with antitrust laws.
- Hearings will be held before a final decision on the fines is made.
Israel's Antitrust Authority intends to fine El Al airlines 109.6 million shekels (approximately $29.5 million) for allegedly abusing its monopoly position. The authority claims that during the recent war, El Al systematically denied competitor Arkia access to aircraft maintenance hangars, despite an existing agreement between them. The authority had previously announced its intention to impose the fine on February 23, 2026.
In addition to the corporate fine, two El Al executives could face personal penalties ranging from 449,000 to 548,000 shekels each. Preliminary investigations suggest that Arkia had been leasing hangars from El Al for years. However, starting in August 2024, during the "Iron Swords" war, El Al allegedly began rejecting Arkia's requests, even when hangars were available. The authority cited a practice within El Al called "soft refusal," where the company would cite fabricated reasons for denial instead of outright rejecting cooperation, leading Arkia to believe agreements were still in place.
The Antitrust Authority's claims stem from El Al's dominant position in providing aircraft maintenance hangars in Israel and on numerous international routes. The alleged violations are considered particularly serious because they occurred during wartime, a period when foreign airlines reduced flights to Israel, intensifying competition among remaining carriers like Arkia and El Al.
According to the authority, restricting hangar access could have severely hampered Arkia's operations, risking flight delays and cancellations due to an inability to perform timely technical checks. This could have led to financial losses, passenger lawsuits, and reputational damage for Arkia, potentially increasing ticket prices. The authority views El Al's actions as a violation of the Competition Law, which prohibits monopolists from unreasonably refusing services and abusing their dominant position.
El Al has vehemently denied the accusations, stating that the company adheres to all laws, including antitrust regulations, and has not committed any violations. The airline asserted that it has assisted other Israeli carriers during the war, going beyond legal obligations, and continues to provide Arkia with services, including hangar use, when circumstances permit. The Antitrust Authority will hold hearings before finalizing any fines, allowing El Al and its executives to present their objections.