El Al Makes Provision in its financial reporting due to price fixing probe

The Israeli airline said its decision was taken with a view to reaching a possible settlement with the Justice Department
 
El Al Israel Airlines Ltd. said last Monday it would take a USD$20 million charge in its financial reporting, for a "possible settlement", in the wake of a US Justice Department investigation ( DOJ) into price fixing between several airlines.
 
Carriers throughout the world are contending with a wide-ranging multinational probe conducted by DOJ, EU antitrust authorities and other governments into alleged price fixing on cargo carriage in 2000-06.
 
El Al said the Justice Department's antitrust division was conducting an investigation regarding the price collusion in the cargo operations of El Al and other airlines in the period between 2000 and early 2006.
 
The Israeli airline said its decision was taken with a view to reaching a possible settlement with the Justice Department. El Al said its provision was "an act of caution" andnot a "statement of liability in any way."    
 
Several airlines have already paid heavy fines to DOJ or agreed to do so, including British Airways and Korean Air. Air France-KLM last week booked a €530million ($835.6 million) provision to cover potential cargo antitrust fines