Court Overturns Payout to Arkia Passengers for Unrequested Compensation

The Tel Aviv District Court has overturned a Small Claims Court ruling that ordered Arkia Airlines to compensate two passengers for services they did not receive, despite not having requested such compensation in their lawsuit. The original claim was filed by Hadaswa and Or Friedman, a mother and daughter, seeking NIS 10,000 after their flight from New York to Tel Aviv on June 15, 2026, was canceled due to the war in Iran, referred to as "Operation "Lion's Roar." The women stated Arkia offered a refund of the original ticket price ($650 per passenger) but they had to purchase new tickets for $1,400 each, demanding compensation for the price difference and emotional distress.

Arkia argued that the flight cancellations were due to a government decision to close airspace, exempting them from legal compensation and alternative flight obligations. The Small Claims Court initially sided with Arkia on these points but Senior Registrar Iris Anavi-Ozkir ruled that Arkia had not provided the required assistance services and ordered the airline to pay NIS 2,500 plus NIS 500 in legal costs.

However, Judge Avigail Cohen of the District Court accepted Arkia's appeal, noting a "clear error" in the Small Claims Court's decision. She stated that while the Small Claims Court has procedural flexibility, it cannot grant relief not requested by the plaintiff without giving the other party a chance to defend against that specific claim. Judge Cohen pointed out that compensation for lack of assistance services was not requested, and Arkia therefore did not need to defend against such a claim. The court also questioned the basis for the NIS 2,500 compensation amount.

The District Court ultimately accepted Arkia's appeal, dismissed the Friedmans' claim, and canceled the awarded compensation and legal expenses. The mother and daughter did not respond to the appeal request or attend the hearing. Arkia was represented by attorney Sivan Razon.