Antitrust Authority opposes El Al deal to buy Israir

Flag carrier El Al Israel Airlines said on Wednesday it has received notice that the Antitrust Authority opposes its deal to buy smaller low-cost rival Israir from IDB Tourism.

“The company will study the authority’s decision when it is received and will weigh its options,” El Al said in a statement to the Tel Aviv Stock Exchange.

El Al reached a deal in July for its Sun d‘Or unit to pay up to $24 million for Israir.

IDB Tourism was also to receive a 25% stake in Sun d‘Or, which flies to 17 destinations in France, Italy, Switzerland, Greece and elsewhere in Europe.

Israir, which flies to 28 cities in Europe, has 650 employees. It earned $11.7m. in 2016 and lost $1.5m. in the first quarter of 2017. (Reuters)