Israeli Ground Handling Companies Demand 10 Million Shekels Compensation from Treasury Over War Losses
The Knesset Economic Committee, chaired by MK David Bitan, discussed concerns about the operational continuity of Israel's civil aviation sector following the Treasury's refusal to compensate ground handling companies for losses incurred during wartime. Three companies, QAS, Eurohandling, and Looper Aviation, owned by the Maman Group, have faced repeated operational cutbacks and employee furloughs whenever Israel's airspace is closed or flight numbers are reduced. Unlike airlines, these companies are not entitled to compensation under existing frameworks.
The discussion, initiated by MKs Shelly Tal Miron and Yaakov Margi, included representatives from the Treasury, Ministry of Transport, and the affected companies. Bitan noted that a prior agreement with the Treasury was blocked by the Israel Airports Authority (IAA) due to legal advice preventing funds allocation solely to ground handling firms. This issue was later resolved when the Ministry of Transport identified a budget source.
Tal Miron emphasized the critical nature of ground handling services, highlighting the difficulty in maintaining trained personnel and the direct impact on consumers and ticket prices. She criticized ongoing disputes between the Treasury and IAA, stressing that companies are at the brink of collapse and the Treasury must resolve the issue. Kerem Klaper from the Transport Workers Union added that employees have exhausted unemployment benefits and face income loss, risking the loss of trained staff.
The Ministry of Transport confirmed economic harm to these companies, estimating compensation needs at approximately 10 million shekels for 2024, with future years pending. Nahama Ronen, Chair of the Maman Group, revealed that a compensation framework for 2024 was agreed upon but later withdrawn by the Treasury, which she accused of blocking funds despite available budget sources.
Conversely, the Treasury maintained no compensation is justified for 2024, citing data showing only one company with significant losses and denying the need for additional payments beyond a general sector framework covering late 2023. Treasury official Daniel Schwartz stated their position is based on professional justification, which they found lacking. Bitan accused the Treasury of shifting blame from the IAA to themselves, while Ronen accused the Treasury of dishonesty regarding agreed figures.
The debate underscored that maintaining professional readiness requires companies to retain staff even during downtime, leading to ongoing financial losses. Bitan announced plans for a follow-up meeting with Knesset members and Treasury representatives to further examine the issue, with the committee set to reconvene afterward.
