Economy12:05 · 25m ago

Israel to Compensate Airlines for Parking Costs During 'Operation Roaring Lion'

Globes
Translated & summarized from Globes by baba
The story · English

During Israel's recent "Operation Roaring Lion," several Israeli airline planes were forced to leave the country and park at foreign airports due to the presence of American military aircraft at Ben Gurion Airport. Transport Minister Merav Michaeli and Finance Minister Bezalel Smotrich have agreed on a plan to reimburse airlines for 70% of their parking expenses incurred abroad. This compensation is estimated to range between 50 and 100 million shekels.

Following the operation, government ministries held a meeting with CEOs of Israeli airlines including El Al, Israir, Arkia, and Air Haifa to review the evacuation efforts. During the meeting, the airline executives highlighted the significant financial damages they suffered, including parking, accommodation, and operational costs for planes stationed outside Israel. The agreed compensation mechanism currently covers only parking fees.

Approximately 100 American planes and refuelers occupied Ben Gurion Airport since the start of the conflict, raising concerns about severe flight cancellations affecting millions of Israeli travelers. However, fears for July were alleviated after about 20 American planes were removed last week, with another 30 expected to leave next month.

Despite the new compensation for parking, the airlines' total losses are much higher. In a recent Economic Committee discussion, El Al reported losses of around $120 million during the operation, while Israir and Arkia reported daily losses of about $250,000. No agreement has yet been reached on compensating these broader losses. Additionally, a compensation framework for passengers remains unresolved due to disagreements between the Finance Ministry and the Transport Ministry.

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