El Al Israel Airlines Ltd. (TASE:ELAL) is seeking a ministerial declaration and legal amendment so it will not need to pay compensation in terms of accommodation and transport for Israeli passengers left stranded abroad.
This morning there will be a discussion in the Knesset Economics Committee about the operation to repatriate Israelis stranded abroad since the start of the war with Iran earlier this month. From preliminary motions filed by El Al ahead of discussions, it seems the airline wants an amendment to the Aviation Services Law, to remove its obligations towards passengers in emergency situations, such as the current war with Iran. El Al portrays a difficult economic situation created by operating rescue flights during the war, and is demanding official recognition of the event as a “special situation” that allows for relief measures for airlines.
The Aviation Services Law, enacted in 2012, ensure basic rights for passengers on flights to and from Israel, in the event of flight cancellations, delay or refusal to board a passenger. The law requires airlines to provide assistance services and financial compensation, depending on the circumstances.
Ordinarily, when a flight is canceled or significantly delayed, passengers are entitled to assistance and statutory compensation. The assistance includes hotel accommodation, transport between airport and hotel, food, and refreshments. In addition statutory compensation can range from hundreds to thousands of shekels, as well as a refund on the flight ticket or the provision of an alternative ticket.
Eligibility for statutory compensation is conditional on the disruption being caused by circumstances within the airline’s control, such as an operational malfunction or a schedule error. On the other hand, when special circumstances are involved that are beyond the airline’s control, such as war, airspace closures, exceptional security regulations, or extreme weather conditions, the airline is not obligated to provide statutory compensation, but is still obligated to fund assistance.
For months, the Knesset Economics Committee discussed an amendment to the law, to make it appropriate for the war period, and it was finally passed as a temporary measure. Previously, the law required airlines to pay financial compensation to passengers for flight cancellations, provide accommodation without a time limit, and offer an alternative flight to the original destination.
Now, the Minister of Transport Miri Regev, with the approval of the Economics Committee, is authorized to declare a “special situation”, thereby temporarily suspending some consumer rights during periods of emergency. Accommodation will be limited to two nights, the advance notice of cancellation will be shortened from 14 to 3 days, and an alternative flight offer will be allowed not to Israel but to a nearby destination only. The concessions will be granted for a period of up to 60 days at a time, with all of them valid only if Regev declares a “special situation”. In practice,she has not yet done so.
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According to El Al, the Aviation Services Law must be urgently updated, so that it also includes a clear exemption from the obligation to provide assistance services – accommodation, transport, food and means of communication for passengers in times of emergency. The airline is also asking that the flights it is operating to rescue Israelis stranded abroad be considered a “legal alternative”, even if they did not take off or land at the passenger’s original destination.
El Al is also asking the government to publish an official notice to the public that an amendment to the law is planned, in order to reduce the number of lawsuits that have been filed or may be filed against it. El Al is asking that Regev immediately exercises her authority under Section 9 of the law, and declares a “special situation” that will allow freezing of some consumer rights of passengers, even without additional legislation.
El Al claims that in the current reality, it cannot bear the burden of hundreds of flights, some of which are loss-making, without the state providing legal and financial backing that would allow the continuation of the operation. To date, the company has assisted in the repatriation of tens of thousands of Israelis by air and sea. The company is also currently receiving public criticism for not operating rescue flights on Shabbat, with the exception of three humanitarian rescue flights that brought home passengers with the approval of the Chief Rabbinate of Israel.
Published by Globes, Israel business news – en.globes.co.il – on June 23, 2025.
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