Antitrust Authority approved CAL deal with Arkia

CAL will buy cargo space on Arkia passenger flights to Western European destinations and Asia for the next two years
 
Ronit Kan, Antitrust Authority director general, exempted last week from a restraint of trade ruling the air cargo agreement between Arkia Israeli Airlines Ltd. and CAL (Cargo Airlines Ltd) under which, CAL intend to purchase cargo space on Arkia's passenger flights.
 
According to the deal, CAL will buy cargo space on Arkia passenger flights to Western European destinations and Asia for the next two years.
 
The Antitrust Authority reviewed the agreement because it was concerned that it was liable to be a restraint on trade, reduce competition, and harm users of air cargo services.
 
The review found no grounds for harm to competition because, in addition to CAL and Arkia, there are numerous airlines that carry cargo in their passenger planes to destinations worldwide, as well as designated cargo flights.
 
CAL offers a vast range of services and ideal cargo shipping solutions for both export and import. The company owns and operates two wide-body 747-200F aircrafts, each with an over 110 ton capacity, and with special nose and side loading cargo doors specifically designed to accommodate cargo of exceptionally large size.
 
The company is privately owned by the Nir Shitufi agricultural cooperative that represents the Israeli kibbutzim and moshavim.
 
Arkia Israeli Airlines operates 4 ATR 72-500, 2 Boeing 757-300, 4 Bombardier Dash 7 Series 100 and 4 Boeing 787-9 on order.