Was El Al Profiting from Crisis? Israeli Regulator Says Yes, Proposes Hefty Fine
In a move that’s sure to spark debate, the Israel Competition Authority (ICA) has dropped a bombshell on national carrier El Al, accusing the airline of ‘excessive and unfair’ fare increases following the outbreak of the Gaza war on October 7, 2023.
The ICA’s findings are stark: they claim there was no legitimate justification for the significant surge in airfares during a period of national crisis. For many, El Al was a lifeline, connecting Israel to the world when other carriers had halted flights. The regulator, however, alleges that this crucial role was exploited, leading to prices deemed ‘excessive’ and ‘unfair’ to the flying public.
As a result, El Al is now facing a proposed maximum fine of a staggering 121 million shekels. While this figure sounds substantial, it’s worth noting the ICA’s further revelation: this proposed maximum fine amounts to only 4 percent of the airline’s profits since the war began. This detail raises questions about the true impact of such a penalty and whether it sufficiently deters similar actions in the future.
This development underscores the critical role of competition authorities in safeguarding consumer interests, especially during times of vulnerability. It serves as a reminder that even national institutions are not immune from scrutiny when it comes to fair pricing and ethical conduct.
Source: Original Article
