Knesset Finance Committee agreed to apply antitrust laws to the airline industry

The bill, if approved, would allow the Antitrust Authority to examine market agreements between Israeli and foreign airlines, as well as between Israeli companies
 
A proposal to make the aviation sector subject to antitrust laws was approved last week by the finance committee as part of the Economic Arrangements Bill that accompanies the government 2007 budget.
 
The bill, if approved, would allow the Antitrust Authority to examine market agreements between Israeli and foreign airlines, as well as between Israeli companies - something from which the industry has been exempted since 1961.
 
Consumers can view the new reforms as a victory that should lead to much lower air fares and freight costs related to carriage of goods by air.
The Israeli airline sector had enjoyed an exemption from the antitrust laws which was granted in 1961.
 
The exemption was granted in the early 60' when the antitrust exemption was meant to equate Israeli law with that in the Western world.
 
Since that time the aviation industry has become highly competitive in most developed countries - and only Israel has remained without any legal supervision over airline competition.
If indeed the airline industry becomes fully regulated, El Al's agreements will come under supervision for not engaging in anti-competitive behavior.
 
Illegal, anti-competition agreements would be invalidated, which in turn would transform the face of the industry, adding flights while reducing prices on international routes.