Israel Considers Revoking Bus Operator Gefen's License Amid Service Failures
Israel's Ministry of Transportation is contemplating the removal of bus routes from the Gefen (Tnuufa) company and potentially revoking its operating license due to ongoing service failures. This consideration follows a review by the National Public Transport Authority, whose director, Idan Moalem, called for an examination of all available sanctions against the company. Moalem stated that further delays are unacceptable given the continuous harm to passengers.
Potential actions include convening an urgent tender committee to reassign Gefen's routes and initiating proceedings to cancel or revoke its operating license. However, the authority's legal counsel advised exhausting other avenues first, noting that reassigning routes requires a viable alternative operator. Consequently, the authority has ordered Gefen to complete its hearing process, meet specific requirements, targets, and deadlines for rectifying deficiencies. Failure to comply will lead to more severe measures.
This move comes after a series of events escalating tensions between Gefen, the state, and local authorities. Approximately 400 Gefen drivers recently went on strike, citing issues with bus maintenance and uncertainty regarding their wages and employment conditions. Following the strike, local council heads in the Samaria region demanded the Ministry of Transportation seize Gefen's routes, alleging persistent service failures.
The workers' union, represented by the Histadrut, also raised concerns about the buses' maintenance status compromising the safety of drivers and passengers, and about cash flow difficulties impacting service. Ariel Mayor Ya'ir Shtabbon claimed his municipality had warned the Ministry of Transportation about Gefen's service problems for three years, with letters demanding intervention sent since 2024. Additional authorities in Judea and Samaria, along with the Beit Shemesh municipality, joined this demand after the strike.
Data presented by the authorities indicates Gefen canceled hundreds of trips in the latter half of 2024 and throughout 2025. In the first half of 2026, its service non-performance rate was approximately 5%, considered high compared to other companies. The transportation director for Judea and Samaria, Israel Afriat, noted Gefen is short about 50 buses and that its ability to meet obligations was questionable even during the tender process, partly due to a NIS 70 million gap between Gefen's bid and others. Golan Yirmiyahu, director of the implementation department at the authority, added that significant management issues exist, and simply adding vehicles would not resolve the company's problems.
Meanwhile, Gefen's owners, Maya Tour, Eastlink Lankor, China Motors, and the Shasha Group, are in negotiations to sell the company, with Metropolin reportedly among interested buyers. The authority stated that even a future sale would not erase existing problems. Approval of a change in control could be contingent on the buyer assuming all of Gefen's debts and obligations, addressing the bus and infrastructure shortages, and presenting a binding plan for service improvement.
Gefen responded by stating that ongoing dialogue with the Ministry of Transportation has led to demands for improved punctuality and service execution. The company claims recent performance data shows a consistent upward trend in service improvement and that it is working intensively to further enhance service levels.
