The Competition Authority announced today (Monday) that it intends, subject to a hearing, to impose a financial sanction of NIS 109,623,501 on El Al.
At the same time, personal fines between NIS 449,000 and 548,000 are being considered for two company executives.
According to the authority, El Al refused to grant Arkia access to hangars for aircraft maintenance, despite a multi-year agreement under which Arkia rents El Al’s hangars. Starting in August 2024, during the “Iron Swords" war, El Al consistently denied Arkia’s requests, citing reasons deemed insufficient by the authority, while creating the impression that the agreement remained unchanged.
El Al controls the Israeli passenger aircraft hangar market and operates on many international routes where it competes with Arkia. During the war, with foreign airlines reducing operations in Israel, Israeli carriers were the main competitors. Denying hangar access could have delayed or canceled flights, forced leasing of substitute aircraft, and caused financial and reputational risks, with costs potentially passed to consumers.
The authority said El Al unreasonably refused to provide a service in its monopoly and abused its position, violating the Economic Competition Law. A hearing will allow El Al and the executives to present their arguments before a final decision.
El Al responded: “We disagree with the claims in the authority’s letter. El Al always acts according to the law, including competition law. We are convinced no wrongdoing occurred. Throughout the war, El Al assisted other Israeli airlines far beyond legal requirements, out of solidarity and commitment to passengers, and continues to provide services-including hangars-to Arkia wherever possible."