Israir: El Al competed unfairly on the NY route

A legal claim for NIS 8 million was lodged last week in the Tel Aviv District Court by Israeli airline Israir against El Al Israel Airlines. Israir alleges that El Al had abused its monopolistic power on the Tel Aviv-New York route, and thereby damaged Is
12.12.04 / 00:00
Israir: El Al competed unfairly on the NY route
12.12.04
Israir: El Al competed unfairly on the NY route
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A legal claim for NIS 8 million was lodged last week in the Tel Aviv District Court by Israeli airline Israir against El Al Israel Airlines. Israir alleges that El Al had abused its monopolistic power on the Tel Aviv-New York route, and thereby damaged Israir.
 
According to the claim, during the period July to October 2004, Israir operated flights between Tel Aviv and New York. Israir claimed that El Al sought to prevent its entry into this market, mainly through aggressive price reductions, in breach of antitrust law. Israir said that because of these actions by El Al, it had to cease operations on the New York route after just three months and a loss of NIS 8 million.
 
The claim emphasized that within a week after Israir started operating the NY route, El Al's flight fares sank to $350, compared with $800-1,100 during the summer months in previous years. Israir claims further that, as soon as it ceased to operate the route, El Al's fares rose again to their former level.
 
Israir seeks a declaration that El Al abused its status in a way that reduced competition and harmed the public.
 
El Al rejected Israir's claims of abuse of monopoly power by El Al.

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