Foreign Airlines Urge Israel to Amend Aviation Services Law Amid Ongoing Conflict

Representatives of major foreign airlines operating in Israel, including Delta, British Airways, easyJet, and Wizz Air, have formally requested that the Knesset amend the current Aviation Services Law. The amendment, they argue, is necessary to accommodate the operational and financial strains airlines face due to disruptions caused by ongoing regional conflicts.

Proposed Amendment to the Aviation Services Law

The airlines have petitioned the Knesset Economic Affairs Committee for a revision of the compensation requirements outlined in the Aviation Services Law, which was originally enacted for peacetime conditions. Under the current law, airlines are required to compensate passengers for flight cancellations and changes, often covering the cost of alternative flights. While this law aims to protect consumer rights, airlines contend that it has become unmanageable amid the security challenges Israel faces. According to the letter, maintaining operations under these circumstances has become financially unsustainable.

Advocate Shirly Kazir, representing over 15 foreign airlines, explained the financial burden, noting that airlines sometimes incur costs up to 500 times the original ticket price to accommodate passengers with alternative flights. Kazir emphasized the need for legal certainty to incentivize airlines to continue flying to Israel despite the risks.

Insurance and Security Concerns

At an October Economic Affairs Committee meeting, insurance for flights was highlighted as a major barrier to foreign airlines resuming services in Israel. In earlier discussions, foreign airlines had agreed to resume flights if the Israeli government extended the same insurance support offered to Israeli carriers. However, the ongoing conflict has exacerbated security risks, further complicating the situation.

Financial Impact on Airlines

Airlines have argued that without amendments, they are left to shoulder significant losses due to the costs of passenger claims and legal defense against lawsuits stemming from canceled flights. These financial strains have led several airlines to consider halting their services in Israel, despite the high demand for flights. Kazir remarked that legal adjustments might slightly reduce passenger rights but could ensure the continuation of vital international flights to and from Israel.

Looking Forward

The foreign airlines hope that by easing some regulatory requirements, Israel can strike a balance between safeguarding passenger rights and enabling airlines to operate sustainably in a challenging environment. With an amended law, airlines may be better positioned to continue serving Israeli travelers without facing overwhelming financial repercussions.