Despite the ceasefire in the north, less than ten foreign airlines announced the resumption of Israel flights. There are many obstacles that foreign airlines want before their return.
This leaves the aviation and tourism sector in Israel in a deep crisis and it seems that there is no solution on the horizon. Meanwhile, flights remain much higher than they were in recent years, and those who want to travel between Israel and the United States must either wait for several months or pay thousands of dollars for the seat.
Aqaba 1: Exemption from paying compensation to cancel flights
Several foreign and Israeli airlines demand temporary relief from the “Possibility Law”, which was promoted by MK Ahmed Tibi and granting passengers the right to compensate for and postponing late flights and postponement.
This campaign, which was conducted by airlines, has gained some reasons and led to great progress in the legislative process. However, the final version of the amendment this week arrived at the Knesateet Economic Committee headed by MK David Bitan (Likud), where it stopped. Bitan, for his part, claims that he is not interested in hurting consumers, and that it is better to find other solutions that provide incentives for companies.
In practice, the decision not to interfere has affected consumers. Aviation options from Israel have been significantly reduced, and this not only affects the tourism industry but also the ability to travel in emergency situations and maintain trade relations abroad in the economy sectors, such as high technology, for example. Prices, as usual in the free market, climb when the supply is low and the demand is high.
For example, the low -cost Irish airline, which has already resumed Israel’s flights during a previous stage of the war, rejects it after escalation in the north, a return without changing the “Tibi Law”. The airline recently revealed that it was forced to pay 4 million euros as a result of the “Tibi Law”.
The second obstacle: closing station 1 and higher fees
Ryanair was not deterred from returning to Israel under the compensation law alone. The closure of the Ben Gurion Airport 1 also affects all low -cost airlines because the landing fees there is much lower than old airlines. Low fees in Building 1 stems from the services provided by the Israel Airports Authority, including the size of the customs exempt and the passenger terminal. Some people reject this excuse, as additional costs are transferred to passengers, which are small amounts less than $ 20.
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Low -cost airlines, on the other hand, are angry at the decision. The costs are already included in the tickets that are marketed for travelers. But when the ticket is usually low in price, the added cost is harmful to marketing and its competitiveness against old airlines and increases ticket prices, especially the cheapest, by tens of one hundred. On the other hand, this did not stop the low -cost air, starting from the appeals gradually in Israel during the next month.
The Israel Airports Authority said, “In its conversation with representatives of about 100 foreign airlines, it has been emphasized that the authority will do its best to help other companies return to operations in Israel, including the reopening of station 1, if the low -cost airlines are obligated to A continuous return to Israel, and on a large scale.
The third obstacle: The Israelis oppose relief to foreign airlines
MK Bitan, as Endoined, wants to exhaust other options before changing legislation that is supposed to harm consumers. To this end, it suggests that low -cost airlines like Ryanair that fly to Station 3 pays reduced fees – similar to the drawing they paid in Building 1.
The Director General of Israel Airports (IAA) Sharon Kidmi stated that IAA has a negative cash flow of 1.2 billion NIS and a 150 million NIS operating loss. The losses from the dramatic decrease in the movement of passengers stem during the past year. In the normal year, about 24 million passengers pass through Ben Gurion Airport, and the expected decline this year to 14-16 million people is important, especially given that the country is in war.
IAA prefers to see the Ministry of Finance, which in the previous crises put its hand in its pocket, pushing the difference. Bitan has called on the ministries of financing and transportation to finance the reduced fees of foreign airlines. The Ministry of Finance objected and Bitan announced that the committee would not advance the “Tibi Law”.
It also opposed the proposal of the Israeli Airlines. They have no problem in principle with this step, as long as it also benefits from reduced fees. Israeli Airlines claims that otherwise, there will be unjustified harm to competition and the principle of equality, adding that such a situation will create distortion that would reward the foreign airlines that abandoned Israel during the war. Betan was angry at the position of Israeli Airlines. “It is a shameful and arrogant order to make such claims, you cannot enjoy war profits and now you ask for equality. This is unacceptable to me,” he said.
It was published by Globes, Israel Business News – En.globes.co.il – December 11, 2024
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