Foreign airlines seek legal changes before returning to Israel

Representatives of foreign airlines in Israel have sent a letter to the Knesset Economic Affairs Committee legal advisor seeking an amendment to the Aviation Services Law.

The amendment would make it easier for foreign airlines to be hit by disruptions caused by the war. The airlines include low-cost carriers and legacy airlines, including major companies like easyJet, Wizz Air, Delta, and British Airways.

Compensating passengers

The current law requires airlines to compensate passengers for flight cancellations and changes and, if necessary, find and pay for alternative flights.

However, the law is enacted for peacetime and unsuitable for prolonged emergencies. The regulatory requirements mean that foreign airlines are forced to cancel many flights, suffer significant losses and cope with passenger claims.

According to the letter, the requirements in the law make their activity in Israel financially unprofitable, and they want the compensation clause of the law suspended.

The Economic Affairs Committee discussed the issue at the beginning of October when insurance was also on the agenda as a main reason for the airlines not returning to Israel. Before the Iranian attack in April, foreign companies even pledged that if the state would help with insurance support, as it does for Israeli airlines, there would be a swift resumption of Israeli flights.

Since then, the security situation has only escalated, and consequently, the airlines are now stressing the importance of legal amendments.

Adv. Shirly Kazir of the Fischer (FBC) law firm represents over 15 foreign airlines in Israel. In the letter sent, she told "Globes," "The issue that hurts the most for airlines today is that to give passengers an alternative flight, companies have to bear costs that sometimes reach 500 times the original cost.

To incentivize foreign airlines to fly to Israel, they need legal certainty. The thinking is that if more airlines fly to Israel, even if it somewhat erodes the rights according to the Aviation Services Law, it will pay because it will be possible to fly. Lawsuits against airlines are expensive for the companies also defending against the lawsuits in courts involves a lot of costs, and this causes the companies to take the cold decision to give up on the activity in advance."