Israel’s Competition Authority said Sunday that it plans to formally classify El Al as a monopoly on flights into and out of Israel for the period spanning October 7, 2023, through May 2024, and is seeking to levy the maximum fine permitted by law — NIS 121 million — pending the outcome of a hearing.

The regulator said that once foreign carriers halted operations in the wake of the Hamas attack, El Al’s share of the aviation market surged sharply, climbing from roughly 20% prior to October 7 to more than 70% within days. During the initial months of the war, the airline’s overall market share remained above 50%. The authority also found that average airfare during this time increased by approximately 16%, with hikes on major routes ranging between 6% and 31%.

According to the Competition Authority, those fare increases were “excessive and unfair” in light of the reduced competition and the heightened demand from travelers.

El Al pushed back against the findings, arguing that the pricing methodology used by the regulator is fundamentally flawed and without precedent. The airline said it intends to challenge the conclusions and present its position during a formal hearing process.

{Matzav.com}