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 hit by disruptions caused by the war. The airlines include both low cost carriers and legacy airlines including, it is believed, major companies like easyJet, Wizz Air, Delta and British Airways.
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The current law requires airlines to provide compensation to passengers for flight cancellations and changes, and if necessary find and pay for their alternative flights. But the law enacted for peace time and is not suitable for prolonged emergency periods. 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 issue was discussed by the Economic Affairs Committee at the beginning of October, when the matter of 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 the legal amendment.
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 give an incentive to foreign airlines to fly to Israel, they need legal certainty. The thinking is that if there are more airlines that fly to Israel, even if it erodes somewhat 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.”
Published by Globes, Israel business news – en.globes.co.il – on November 5, 2024.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.
