As many as fifteen major international airlines have reportedly threatened to abandon Israel indefinitely amidst ongoing regional security concerns unless the country changes its generous passenger compensation rules.
Some of the airlines that have allegedly demanded the changes include Delta Air Lines, British Airways, and low-cost European carrier EasyJet, as well as Spanish flag carrier Iberia and Wizz Air.
The airlines have come together to demand changes to Israel’s Aviation Services Law, which was enacted in 2012 and is also known as the ‘flight compensation law.’ The law covers all flights departing or arriving in Israel, regardless of the nationality of the airline.
Based on the European Union’s passenger compensation rules, airlines must pay customers if a flight is significantly delayed or canceled with less than 14 days’ notice.
In the case of last-minute cancellations, passengers can claim as much as $400 per person in compensation, although just like the EU legislation, airlines can avoid paying money if they can prove the cancellation was the result of an extraordinary circumstance.
What constitutes an extraordinary circumstance is, however, open to interpretation, and security concerns aren’t necessarily enough to exempt airlines from paying out compensation.
The Israeli government did temporarily limit compensation rights in the immediate aftermath of the October 7 terror attack in 2023, citing wartime conditions, but this waiver has now come to an end.
Without a similar waiver or amendment to the passenger compensation rules, airlines could not be on the hook if they resume flights to Israel only to then ground flights again if the security situation deteriorates.
Airlines would, however, struggle to argue that the cancellations are an extraordinary circumstance because aviation regulators, including the European Air Safety Agency, have repeatedly reassured carriers that Israel can effectively manage risks to civilian airlines.
No US-based carrier has served Tel Aviv since August, prompting Democrat Congressman Rep. Ritchie Torres (D-NY) to accuse them of effectively boycotting Israel.
In an open letter, Torres questioned why it wasn’t safe for American Airlines, Delta, or United to fly to Israel. At the same time, the country’s flag carrier, El Al, continues to operate non-stop flights to the United States.
Earlier this month, a Jewish news website filed a lawsuit against the Federal Aviation Administration (FAA) in an attempt to find out whether the agency has tried to discourage airlines from resuming flights to Israel.
The FAA never publicly advised airlines to stop flights to Israel in the aftermath of the 2023 Hamas terror attack, but the lawsuit accuses the agency of refusing to hand over documents about any discussions it has had on the matter with US air carriers.
