EL AL may cut airport security services to Arkia, Israir

At present El Al is the sole provider of airport security screening and services for both its own flights and those of Arkia and Israir
 
Arkia Airlines Ltd. Israel's second largest airlines and Israir Airlines and Tourism Ltd. may be forced to stop their international flights in the summer due to security dispute between El Al Israel Airlines Ltd. and the government.
 
El Al Israel Airlines Ltd. which provides airport security services for Arkia Airlines Ltd. and for Israir Airlines and Tourism Ltd., is known to have lodged formal demand with the Israeli government to provide unrestricted indemnity to cover any lawsuits related to security incidents.
 
At present El Al is the sole provider of airport security screening and services for both its own flights and those of Arkia and Israir.
 
The government pays the airlines 60% of these costs and the airlines pay the other 40%.
 
El Al has frequently protested that it should not have to provide these airport services to its two competitors and the Ministry of Transport is known to have been seeking an alternative arrangement.
 
Arkia and Israir are not prepared to grant El Al such an indemnity and agree with El Al that the government should do so.
 
However, there are no indications that the government intends providing such an indemnity and as it stands there is a reasonable likelihood that Arkia and Israir may be compelled to stop flying overseas.