El Al Israel Airlines has filed a complaint with the Israel Antitrust Authority over price fixing by foreign airlines on transatlantic routes. El Al says it was forced to close its direct Tel Aviv-Sao Paulo route because it was unprofitable and could not compete against airlines in Star Alliance – or what it calls the A++ Transatlantic Airline Pact.
El Al claims the alliance comprised of United-Continental Airlines, Air Canada, Lufthansa, Britain’s bid, Swiss International Airlines, and Austrian Airlines, creates impossible competitive conditions, which are liable to lead to its crash, because its North American routes are its principle source of revenue and profits.
El Al accuses the alliance members of price fixes and says they should be competing against each other rather than cooperating on frequencies, destinations, types of equipment for operating routes, and code-sharing.
The Antitrust Authority is said to be studying El Al’s complaint.
