Globes: American airlines are not expected to return to Israel economy

Despite the progress of amending the Aviation Services Law in Israel, which aims to reduce financial burdens on airlines and compensate travelers for delayed or canceled flights, the Israeli newspaper Globes reported that security concerns are still the most prominent factor hindering the return of foreign airlines.

Legal amendments without adequate response

According to Globes, the Knesset Economic Affairs Committee approved last week the amendment to the Aviation Services Law after a discussion that lasted 9 months.

The amendment reduces the conditions for financial compensation that airlines must pay to passengers in the event of flight cancellations, as foreign airlines, such as Ryanair and Air France, requested these amendments due to the high cost of compensating passengers during the war.

Despite these amendments, Air France announced the extension of the suspension of its flights to Israel for an additional week. For its part, Ryanair confirmed that it will not resume its flights without reopening Terminal 1 at Ben Gurion Airport for international flights.

The security situation hinders return

Globes reported that the current security situation, including missile strikes from Yemen, represents a major challenge for airlines, and as an example, a flight belonging to the Greek airline Aegean was forced to stop in Larnaca due to warnings.

Currently, only 26 foreign airlines operate at Ben Gurion Airport, compared to 90 before the war on Gaza and other fronts. While Air Seychelles announced its return, making it the 27th company, it operates a limited number of flights, and therefore its impact on the sector is minimal, according to the newspaper.

According to the report, if foreign airlines do not return, travelers may have to bear additional costs as a result of flight cancellations or delays without financial compensation beyond the cost of tickets. The absence of sufficient competition will lead to continued high ticket prices.

Chairman of the Knesset Economic Committee, Representative David Bitan, told Globes that the bill will not be put to a final vote in the Knesset until the government pledges to compensate airlines that increase the number of flights to North America. This includes covering 50% of operational losses when flights are canceled for security reasons.

The report noted that long flights between Israel and North America require complex planning and rescheduling of aircraft, which increases the challenges to resuming flights.

According to Globes, US airlines are not expected to resume flights soon due to ongoing security concerns.