Israeli Court Approves Class-Action Lawsuit Against Arkia Over Flight Alternatives

A district court in central Israel has approved a class-action lawsuit against the Israeli airline Arkia. The court found that the plaintiff presented a prima facie case that Arkia systematically violated aviation service laws by failing to offer passengers a choice between a replacement flight and a refund, instead compelling them to accept only a refund.

The lawsuit, initially filed in 2023, alleges that Arkia routinely fails to actively offer passengers a replacement flight, including on other airlines, when a flight is canceled or delayed by more than five hours. Instead, passengers are offered only a monetary refund. The claim further states that even when Arkia has available seats on its own flights, it offers only refunds to maximize profits by reselling those seats at higher prices.

The plaintiffs, represented by attorneys from Rappaport, Levin, Biton, provided affidavits from four passengers whose flights were canceled and who were allegedly offered only refunds, forcing some to purchase more expensive tickets on Arkia. The class action will proceed unless the parties reach a settlement.

Arkia had sought to dismiss the lawsuit, arguing it complies with aviation laws and offers alternative flights based on circumstances, including security situations that may affect availability. The airline contended that while the law grants passengers a choice between a refund or a replacement flight, it does not impose an active obligation to offer a replacement flight to every passenger, only to present the option of reaching the destination.

However, Judge Carmit Ben-Eliezer ruled that the evidence suggests Arkia did not actively inform passengers of their right to a replacement flight, often sending generic notices about refund eligibility only. The court noted that the obligation to provide a replacement flight is not absolute if no alternatives exist, but the lawsuit covers periods beyond emergency situations. The class action will represent passengers entitled to a replacement flight within the four years preceding the lawsuit's filing.