Knesset Votes to Amend Aviation Services Law

After months of deliberation, the Knesset Economic Affairs Committee has voted in favor of a significant amendment to the Aviation Services Law. The amendment aims to protect passengers’ rights in cases of flight cancellations or delays, ensuring that travelers are compensated more easily during disruptions. However, this move also has broader implications for the aviation industry, especially for foreign airlines operating to Israel.

The amendment was pushed for by foreign airlines who have been heavily impacted by the frequent flight cancellations during the ongoing conflict in Israel. The new law eases the terms for compensation that airlines must provide to passengers in such circumstances. With the increased cost of arranging alternative flights on other airlines, many foreign carriers had demanded these changes. Despite this, airline responses have been lukewarm, with little indication of a swift return to full operations.

While some airlines openly supported the amendment, they have continued to delay their services to Israel. Air France, for instance, has suspended its flights for another week, despite having backed the law’s changes. Similarly, Ryanair, which also supported the amendment, has stated that it will not return to Israel until Terminal 1 at Ben Gurion Airport is reopened to international flights.

Currently, only 26 foreign airlines operate at Ben Gurion Airport, a significant reduction from the 90 airlines before the war. The return of Air Seychelles later this week will increase the number to 27, but its limited operations highlight the minimal impact on the sector.

For travelers, the uncertain return of airlines could lead to more cancellations and delays, leaving passengers with limited compensation options. As it stands, if airlines don’t resume services, passengers may be forced to bear the cost of flight cancellations, with no financial compensation beyond the ticket price. This situation may also reduce competition in the market, potentially keeping ticket prices high.

The Government’s Role and Challenges

The bill also includes provisions for the government to cover 50% of operational losses for airlines facing flight cancellations due to security concerns, particularly for carriers like Arkia and Israir. These airlines, which are expected to increase their flights to North America, face considerable risks in resuming service.

However, US airlines, especially those operating long-haul routes like Israel-North America flights, are unlikely to return soon due to the complexity of altering flight schedules and diversions.

While the amendment has passed the committee stage, it is still pending final approval by the Knesset plenary. Economic Affairs Committee chairperson MK David Bitan has stated that the bill will not be brought forward for final approval until the government fulfills its commitment to indemnify airlines like Arkia and Israir.