Monopoly declaration another blow to El Al

As if it didn’t have enough already, El Al was hit with another problem earlier this week.

The Israel Antitrust Authority on September 9 declared the airline a monopoly in providing security services to the other two Israeli airlines, Arkia and Israir.

This decision brings to an end a long dispute caused by El Al supplying the security personnel for all Israeli airline flights.

The Israeli transportation ministry planned to solve the problem by establishing an aviation security authority, but the ministry of finance buried that initiative.

El Al wanted to cease being the “contractor” for security services for the other airlines, but was forced to do it until an alternative was found.

Sources familiar with the situation say the monopoly declaration will reduce El Al’s income from security services.

It will put strict control on the prices El Al charges for the security services it supplies to Arkia and Israir.

The monopoly declaration has hit El Al as its future looks gloomy. The airline has made some wrong decisions since it was privatised. It did not free itself from the ban on flights during the Jewish Shabbat. This ban, a result of a coalition with religious parties, contributed greatly to El Al joining neither of the aviation alliances. The Israeli airline gave up options to purchase Boeing 787s. And these are only the major mistakes.

In this situation, it’s no wonder that El Al sees the upcoming Common Aviation Area agreement between Israel and Europe in apocalyptic terms.

It’s easy to blame the world for your problems, but you should look in the mirror now and again.

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