The Hadar taxi firm, which for decades has had a monopoly on picking up passengers arriving at Israel's Ben Gurion Airport, has withdrawn from the current tender to operate taxis at the airport. The terms of the tender required a substantial cut in fares.
Following Hadar's decision, the Israel Airports Authority announced that the tender was cancelled, and that it would publish a new one. From tomorrow (Monday) and until further notice, any legally operating taxicab in Israel will be allowed to pick up passengers at the airport after registration and verification that the cab and driver meet the general regulations of the Israel Airports Authority. Travelers will also be able to obtain service through taxi hailing apps operating in Israel after the operators register under the rules applying at Ben Gurion Airport. The upshot is that, as was expected, Gett drivers will also be able to pick up passengers at the airport.
Hadar had won the tender together with Gett after offering a 31% discount on official Ministry of Transport fare tariffs. Under the terms of the tender, taxi drivers were to have paid NIS 5 for each trip in addition to the NIS 5 currently collected on exit from the airport by the Airports Authority, that is, NIS 10 per trip altogether. The Airports Authority announced today that it would forego the extra NIS 5. The Authority also said that a test run open to all taxis on Friday was successful, and demonstrated the advantage of registration and supervision of taxis leaving the airport.
Hadar-Lod Taxis says in a statement released today that its withdrawal from the tender stemmed from "the withdrawal of Gett from earlier agreements between the parties, and the severe harm to drivers' pay" Company CEO Menachem Bar-Haim said, "Gett's pricing is unrealistic. We will not agree to work at loss-making prices that will lead to drivers' earning starvation wages." At a special meeting last night, the shareholders in the taxi firm decided against participation in the Israel Airport Authority's new tender, mainly because of the 31% discount on fares, which the company's management said would unfairly hit the earnings and working conditions of the drivers.
"There is no reason that precisely at Ben Gurion Airport there should be the lowest tariff in the country at the expense of the livelihood of drivers at the airport. There is room for considering a moderate reduction in fare tariffs from Ben Gurion Airport, but we will not allow work at loss-making prices. The balance must be found between the need and desire to lower the cost of living and preserving minimum wage conditions for Israel's taxi drivers," Bar-Haim said.
No comment was obtainable from Gett.
The Israel Airports Authority said, "Taxi fares from Ben Gurion Airport are fixed by regulation. In addition, there is a NIS 5 payment (including VAT) for exiting the airport which is set by the control of goods and services prices ordinance, and it will remain unchanged. During this period, the Airports Authority will not charge taxi drivers the NIS 5 concession fee. The Authority will also provide the public a free bus service during busy times when there is a shortage of taxis."
Published by Globes [online], Israel business news - www.globes-online.com - on May 28, 2017
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