Arkia Airlines and Israir today denied that the Antitrust Authority had ordered them to halt their cooperation on international charter flights. Their cooperation became an issue after Knafaim-Arkia Holdings (TASE:KNFM) bought shares and warrants for up to 20% of El Al (TASE:ELAL). Arkia and Israir began cooperating in the current tourist season, after years of bitter competition.
Arkia International CEO Zvi Gonen told “Globes” that the two airlines were continuing their joint flights to 30 destinations in Europe and the Mediterranean basin, including, Paris, London, Rome, Berlin, Stockholm, Amsterdam, Budapest, Prague, Athens, Barcelona, Antalya, and Moscow.
Although the Antitrust Authority did not order Arkia and Israir to halt their cooperation, Antitrust Authority director general Dror Strum and Arkia are holding talks, due to the potential problems arising from its new closeness to El Al that might lead to a future merger.
Arkia president and CEO Prof. Israel (Izzy) Borovich said, “Strum has not yet expressed his opinion. We announced that we would not act without coordinating with the Antitrust Authority.”
Sources close to the Arkia-Israir venture said, “Obviously, Strum will not allow any merger by Israel’s three airlines.”
Published by Globes [online] - www.globes.co.il - on July 9, 2003