In a significant ruling that could reshape how Israel’s Aviation Services Law is applied, the Yerushalayim District Court has completely overturned a nearly NIS 21,000 judgment against Israir, ruling that a flight delayed by 5.5 hours does not qualify as a canceled flight under the law. The court also described the passengers’ lawsuit as “exaggerated and inflated.”

The case stemmed from a couple’s purchase of airline tickets to Budapest for approximately $440. One day before departure, they were informed that, due to security-related disruptions, their flight schedule had been changed. Israir offered them seats on an alternative flight departing the same day, roughly five and a half hours later than originally planned.

The passengers chose not to travel and subsequently filed a lawsuit seeking NIS 29,000 in damages. A Small Claims Court partially accepted their arguments and ordered Israir to pay approximately NIS 21,000.

‘Neither Reasonable Nor Proportionate’

That decision was completely reversed on appeal.

In her ruling, Judge Tamar Bar-Asher emphasized that under Israel’s Aviation Services Law, a flight is considered canceled only if it does not operate at all or departs at least eight hours later than scheduled. Since the replacement flight departed only 5.5 hours after the original departure time, the statutory threshold for cancellation was not met.

The judge sharply criticized the original award, writing that “the obligation to pay 21,000 shekels for a transaction that cost approximately 1,190 shekels is an unreasonable and disproportionate result that has no place.”

She further described the passengers’ original claim as “exaggerated and inflated” and vacated all financial obligations imposed on the airline.

The ruling sends a clear message that relatively minor scheduling changes—particularly those arising from security-related circumstances—do not automatically entitle passengers to substantial compensation.

The decision joins a growing body of recent rulings addressing disputes between airlines and passengers and provides greater clarity regarding the limits of airline liability during periods of operational disruption.

Potential Impact on the Aviation Industry

The ruling comes at a particularly sensitive time for Israel’s aviation sector.

In recent months, Israeli airlines have faced extraordinary security challenges that have forced repeated schedule changes and operational adjustments. Several carriers recently introduced more flexible cancellation policies in response to ongoing regional tensions.

The court’s decision makes clear that airlines are not automatically required to compensate passengers whenever a flight schedule changes. Rather, compensation under the law generally applies only when a flight is fully canceled or delayed by at least eight hours.

In cases falling short of those thresholds, passengers must demonstrate actual and tangible damages in order to recover compensation.

Legal observers note that lawsuits against airlines have increased significantly in recent years, with some claims seeking unusually large awards. The Israir ruling may serve as an important precedent, helping courts distinguish between legitimate passenger claims and efforts to capitalize on travel disruptions for financial gain.

{Matzav.com}