El Al Israel Airlines Ltd. filed last week a complaint with the Israel Antitrust Authority over price fixing by foreign airlines on transatlantic routes
El Al filed the complaint against airlines in the A++ Transatlantic Airline Pact, the world’s largest airline alliance.
A++ members include heavyweights like Continental-United, Lufthansa, Air Canada, Swiss, Austrian Airlines, and BMI.
El Al claims that the A++ Transatlantic Airline pact creates impossible competitive conditions because its North American routes are its principle source of revenue and profits. The Antitrust Authority acknowledged that the complaint had been lodged, and would be fully investigated.
El Al says the A++ Transatlantic Airline pact members are among the world’s largest international carriers, which should compete against each other. Instead, they cooperate almost fully on all subjects and even share revenue. The carriers coordinate flight frequencies, destinations, types of equipment for operating routes throughout the year and code sharing.
An El Al official told the Authority that if the situation continues, the airline would be out of business. “We will be unable to survive in the face of these cartels, without membership in one of them,” the official said.
