El Al, Maman Cargo deal blocked

EL Al Israel Airlines and Maman Cargo Terminals and Handling’s attempt to enter into close cooperation with each other has been blocked by the country’s antitrust authority.

The authority’s director general, Ronit Kan, said that she was concerned the deal could harm competition in the domestic airfreight market, which the two companies dominate. It “is liable to constitute a cartel and abuse by a monopoly”, she added.

In the deal, Maman would have given El Al discounts on air cargo rate, as well as giving 15 per cent of its shares to the carrier in stages over the next two years.

Kan instead suggested that the two companies avoid “implementing the agreement, until full clarification of the legality of the arrangement”.

Share this story