Israeli Government Approves 55 Million Shekel Compensation for Airlines Over Empty Flights During Operation Roaring Lion

The Israeli government has approved a joint proposal by Transportation Minister Miri Regev and Finance Minister Bezalel Smotrich to compensate Israeli airlines for operating empty flights during the closure of Israeli airspace in Operation "Roaring Lion." The compensation package, totaling 55 million shekels, will be distributed among El Al, Israir, Arkia, and Air Haifa to offset costs incurred from flying empty planes abroad due to security and operational restrictions.

The compensation mechanism will be developed by the Ministry of Transportation through the Civil Aviation Authority (CAA) with the Finance Ministry's consent. Airlines can choose between two compensation tiers: the first offers reimbursement of 33.5% of recognized expenses, contingent on a one-year ban on dividend distribution to shareholders. The second tier allows an additional reimbursement of up to 33.5%, provided shareholders inject equity matching the state's contribution. Overall, aid can cover up to two-thirds of recognized expenses.

Despite the compensation, the airlines' losses remain significantly higher. According to reports submitted to the Knesset Economics Committee and the Securities Authority, El Al lost approximately $120 million during the operation, while Israir and Arkia lost about $250,000 daily. These losses stemmed not only from empty flights but also from high costs related to aircraft parking and crew accommodations abroad, as Ben Gurion Airport was unavailable due to the presence of dozens of American refueling aircraft.