Foreign carriers warn they may not resume flights without changes to compensation laws
Group of 15 airlines seek amendments to laws amid war to reduce costs and financial risks, in order to make a return of services to Israel feasible
Sharon Wrobel is a tech reporter for The Times of Israel.
Foreign airlines have warned they are likely to continue to suspend flights to Israel unless the current compensation regulation for canceled flights is amended and adapted to ease the costs and financial risk of disruptions and cancellations, after 13 months of war.
In a joint request, a group of 15 major foreign carriers is seeking to make temporary amendments to the 2012 Aviation Services Law in a position paper submitted to the Knesset Economic Affairs Committee this week. The group is understood to include airlines such as British Airways, Delta Air Lines, and low-cost carriers Wizz Air and easyjet.
“The current regulations in the Aviation Services Law are formulated for disruptions during normal times and are not adequate for extended periods of emergency such as the current period, which began with the murderous terrorist attack on October 7 and has continued ever since until these very days,” Adv. Shirly Kazir at Fischer (FBC) law firm, which represents the group of foreign carriers said in the position paper. “In the absence of a clear change in the relevant regulation in the legislation, foreign airlines lack any incentive to return and operate flights to Israel, as they are faced with many more financial losses.”
Since war broke out with the Hamas terror group following the October 7 onslaught on southern Israeli communities, foreign airlines have repeatedly canceled and resumed their flights to and from Israel due to the security situation. In recent months, US airlines completely stopped flying to Israel amid heightened fighting between Israel and Hezbollah in southern Lebanon, and as tensions rise in the Middle East.
American Airlines extended the suspension of flights to Tel Aviv from March 2025 until September, while Delta Airlines and UK flag carrier British Airways canceled their routes to Israel until April next year joining an array of foreign airlines that have recently expanded their flight suspensions for longer periods.
With the supply of flights low and demand high, ticket prices have soared as travelers from Ben Gurion Airport are almost entirely dependent on Israeli carriers El Al Israel Airlines, Israir, and Arkia.
Under the current aviation law, foreign airlines in the event of a flight cancellation made less than 14 days before departure, are obliged to offer an alternative flight to the passenger. But in the current reality due to the scarce availability of flights and seats the provision of an alternative flight involves a much higher and unreasonable cost compared to the consideration paid to the airline for the flight ticket it sold to the same passenger, it is argued in the position paper.
In recent months, some foreign airlines have been claiming extraordinary circumstances or force majeure due to the wartime situation and are grappling with a multitude of class actions and small claims from passengers who are suing for their entitlement to compensation as stipulated in the law.
In light of the financial risks and the legal uncertainty of compensation claims, the group of foreign airlines are seeking temporary amendments to the aviation law that would limit the cost of the provision of alternative flights relative to the price of the original flight ticket sold to the passenger.
Another requested change is a limit to the number of nights that airlines will be obliged to arrange for the passenger in circumstances where the passenger must be provided with accommodation services, and a shortening of the advance notification period for flight cancellations.
In addition, beyond the amendments in the legislation, the group of foreign airlines is calling on the Israeli government to provide assistance to foreign airlines in all related to the insurance of their activities and operations in Israel, in a similar manner to the assistance given to Israeli airlines.
