The Antitrust Authority has summoned El Al executives for a hearing on the issue before a decision is made.
The woes of El Al Israel Airlines Ltd. (TASE: ELAL) keep piling up. In a special announcement today, the Antitrust Authority states that the director of the Authority is considering declaring the airline a monopoly in the provision of security for Israeli airlines overseas. The Antitrust Authority has summoned El Al executives for a hearing on the issue before a decision is made.
El Al has until May 1 to respond to the claims.
The announcement follows a harsh report by the Israel Securities Authority and the cancellation of the license of El Al's charter subsidiary Sun D'Or International Airlines Ltd.
The Antitrust Authority implied that the decision is due to El Al's conduct with regard to the provision of security for other Israeli airlines. Last November, El Al announced that it intended to unilaterally stop providing security services for Arkia Airlines Ltd. and Israir Airlines and Tourism Ltd. beginning on April 1. El Al only retracted the decision at the last moment in late March, ahead of a special cabinet proposal, which would have compelled El Al to continue providing security services.
Published by Globes [online], Israel business news - www.globes-online.com - on April 7, 2011
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