CAA Was Kept Out of El Al Privatization Process

The Government Companies Authority and the Transport Ministry did not involve the Civil Aviation Authority in the decision-making process concerning the El Al privatization, even though the authority supervises the awarding of licenses, permits and authorizations for civil aviation and advises the minister on matters connected to it.

The report also says the security establishment did not take into account the cost to the state of ensuring air transportation in times of emergency, and carried out no analysis of its cost and benefits, even though the assistant head of the IDF planning branch, recommended this in June 2001.

The report also reveals that until June 2005 no appropriate means of supervision and control h ad been determined, to ensure the vital interests of the state in El Al. Also, no documentation was found explaining why then-transport minister Avigdor Lieberman reduced the minimum stake in the company which must be held by Israelis from 76 percent to 51 percent.