Israel Antitrust Authority Fines El Al $29 Million for Abusing Monopoly

Israel's Antitrust Authority is preparing to impose significant financial penalties on national carrier El Al, totaling approximately 109.6 million shekels (about $29 million USD). The airline is accused of abusing its monopoly status by artificially blocking its Israeli competitor, Arkia, from accessing aircraft maintenance hangars during the "Iron Swords" conflict, which began in August 2024. Two senior El Al executives also face personal fines ranging from 449,000 to 548,000 shekels each.

According to the regulator, El Al engaged in a "soft refusal" tactic, using fabricated pretexts to deny Arkia's hangar requests despite available space. This strategy, the authority claims, created an illusion of continued partnership while preventing Arkia from servicing its aircraft, thereby jeopardizing its operations. The Antitrust Authority stated that El Al's actions posed a serious threat to the Israeli aviation sector, potentially leading to widespread flight delays and increased ticket prices for the public, especially as foreign carriers had canceled flights.

El Al's conduct is being classified as a violation of Article 29 of the Competition Law, which prohibits monopolists from unreasonably refusing to provide services. However, El Al's management has vehemently denied all accusations, asserting full compliance with the law and claiming they provided assistance to other carriers during the war. A final decision will be made after competitive hearings.