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El Al Accused of Denying Rival Hangar Access Amid Gaza War

By  |  February 23, 2026

Israel’s Competition Authority is weighing punitive measures against El Al Israel Airlines over allegations that the carrier violated obligations tied to its status as a monopoly in aircraft maintenance services, according to Reuters.

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    The regulator announced on Monday that it is considering imposing a fine of 110 million shekels, equivalent to about $35.24 million, pending a hearing. In addition, two senior executives at the airline could face personal fines of 449,000 shekels and 548,000 shekels, per Reuters.

    At the center of the dispute is El Al’s relationship with its smaller rival Arkia. According to Reuters, the antitrust authority determined that El Al had breached a long-standing arrangement allowing Arkia to lease hangars owned by El Al for aircraft maintenance — a service considered essential to Arkia’s operations.

    The authority stated that beginning in August 2024, “El Al began consistently refusing Arkia’s requests to lease hangars for aircraft maintenance, regardless of whether hangars were available,” according to Reuters. Regulators warned that such actions may have undermined Arkia’s ability to compete in Israel’s aviation market.

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    Related: El Al Denies ‘Excessive’ Pricing as It Gears Up to Fight Regulator’s Fine

    In its statement, the authority said, “El Al’s conduct could have harmed Arkia’s ability to compete and exposed it to economic, safety, and reputational risks,” also referencing legal exposure and the potential for increased costs to passengers. It further noted, “All of this occurred … against the backdrop of the (Gaza) war and the particularly difficult competitive conditions prevailing in the aviation sector at that time,” according to Reuters.

    El Al rejected the allegations. The airline said it has provided, and continues to provide, various services to Arkia, including hangar access, to the extent possible. It maintained that it has complied fully with competition laws and other legal obligations, and expressed confidence that “no fault can be found in its conduct,” per Reuters.

    The carrier also argued that during the Gaza war it extended support to other Israeli airlines beyond what was legally required, describing its actions as stemming from a sense of solidarity and responsibility toward the traveling public, according to Reuters.

    The latest development follows a separate move by Israel’s antitrust regulator earlier this month. As reported by Reuters, the authority said it intends to seek a 121 million shekel fine against El Al over allegations that it charged excessive and unfair ticket prices during the Gaza conflict.

    The Competition Authority’s final decision in the maintenance case will depend on the outcome of a hearing process.

    Source: Reuters