Israel's Supreme Court Rules on Flight Cancellation Refunds
Translated & summarized from N12 by baba
Israel's Supreme Court has ruled that travel agencies cannot charge handling fees when an airline cancels a flight. The decision clarifies passenger rights, stating that full refunds, including all taxes and fees, are due. The ruling applies retroactively, allowing passengers who were previously charged fees to seek reimbursement. All refund requests and communications should be documented in writing.
The story in 6 lines · by baba
- Travel agencies cannot deduct handling fees from flight cancellation refunds when the airline cancels the flight.
- Passengers are entitled to a full refund of the ticket price, including taxes and fees, if the airline cancels.
- The Supreme Court ruling applies retroactively to past cases where handling fees were improperly deducted.
- Travel agencies are obligated to assist customers with refund requests from airlines.
- All refund-related communications and requests should be made in writing.
- Passengers can pursue claims in small claims court if agencies refuse to issue full refunds.
A new Supreme Court ruling clarifies passenger rights when airlines cancel flights booked through travel agencies. The court determined that travel agencies cannot deduct "handling fees" from refunds when the airline is responsible for the cancellation. This decision stems from a case where a passenger paid NIS 1,087 for a Wizz Air flight, which was subsequently canceled. The travel agency, Israir, deducted $30 as a handling fee from the refund. After the passenger lost in lower courts, the Supreme Court accepted his appeal, ruling the deduction impermissible.
Lawyer Biton, specializing in class actions, explained that if a passenger cancels a flight, cancellation fees may still apply depending on consumer protection laws and contract terms. However, when the airline cancels, passengers are entitled to a full refund of the ticket price, including taxes and fees, or an alternative flight, as per the Aviation Services Law.
The ruling also emphasizes that travel agencies must assist customers in obtaining refunds from airlines when flights are canceled, even if the agency invested time and effort in the process. They cannot simply disclaim responsibility. Furthermore, even if a travel agency's terms and conditions include provisions for handling fees, these clauses are invalid if they contradict the Aviation Services Law to the passenger's detriment.
Refunds should be processed within 21 days of a written request. Passengers are advised to keep all documentation, including cancellation notices, booking confirmations, and receipts. All communication regarding refunds should be conducted in writing to create a clear record. If a travel agency insists on deducting fees, passengers can cite the Supreme Court ruling (RA'A 58313-09-25 Doron Ben Shimon v. Israir Israel Ltd.) and consider pursuing claims in small claims court if necessary.
The decision has implications for past cases as well. Consumers who had flights canceled by airlines and were charged handling fees may be entitled to review their transactions and potentially reclaim deducted amounts, as the ruling clarifies the interpretation of the law for past events. The court's message is that refunds due to passengers are not an opportunity for agencies to profit from fees.
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