The Israeli Competition Authority announced Monday that it plans, pending a formal hearing, to levy a financial penalty of NIS 109,623,501 against El Al over alleged violations of competition law.

In addition to the corporate fine, the authority is weighing personal sanctions ranging from NIS 449,000 to NIS 548,000 against two senior executives at the airline.

According to the regulator, El Al declined to allow Arkia to use its aircraft maintenance hangars, despite a long-term agreement under which Arkia leases those facilities from El Al. Beginning in August 2024, amid the “Iron Swords” war, El Al repeatedly rejected Arkia’s requests for access. The authority said the justifications provided were inadequate and that the airline conveyed the impression that the existing agreement remained in effect, even as access was denied.

El Al holds a dominant position in Israel’s passenger aircraft hangar sector and competes directly with Arkia on numerous international routes. During the war, as many foreign carriers curtailed flights to and from Israel, domestic airlines became the primary players in the market. The authority noted that blocking Arkia’s access to hangars could have led to flight delays or cancellations, forced the leasing of replacement aircraft, and exposed the company to financial losses and reputational damage — expenses that might ultimately have been passed on to travelers.

The regulator stated that El Al’s conduct amounted to an unreasonable refusal to provide a service within a market in which it holds monopoly power, constituting an abuse of that status in breach of the Economic Competition Law. Before any final determination is made, El Al and the two executives will be given the opportunity to present their case at a hearing.

El Al pushed back against the allegations in a statement, saying: “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.”

{Matzav.com}