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Economy16:17 · 1h ago

Economic Impact of Ben Gurion Airport Disruptions Estimated at 25-30 Million Shekels

MaarivCenter
Translated & summarized from Maariv by baba
The story · English

The recent hours of disruption at Ben Gurion Airport have ended, but operational disturbances may continue in the coming days, with the economic damage to Israel's economy estimated between 25 and 30 million shekels. This figure includes lost passenger time, direct and operational costs to airlines, lost revenues for the Israel Airports Authority and airport operators, as well as harm to air cargo, courier services, and supply chains. Additionally, the tourism and hospitality sectors have suffered losses.

The Finance Ministry has warned about the airport's limited capacity, lack of alternatives, and an operational structure that complicates crisis management. Currently, the Israel Airports Authority controls a large portion of operational activities, making the system vulnerable to labor disputes or internal failures that can quickly disrupt almost all international air traffic in Israel. To address this, plans have been considered to develop future airports through private entities to reduce dependence on a single operator and introduce competition.

Criticism has also been directed at the Airports Authority's expenditure structure, where salary costs constitute about 60% of the organization's expenses, with wages significantly higher than the national average. This high ongoing expense limits resources for development programs and reduces flexibility during peak periods. Much of the workforce is employed directly by the authority rather than through external contractors, making it difficult to rapidly adjust staffing levels according to demand.

Although operations at Ben Gurion have resumed, the disruptions may still affect flights and passengers in the near term. To mitigate future crises, authorities emphasize the need to increase capacity at Ben Gurion, advance complementary airports at Ramat David and Sde Dov, introduce additional operators, and improve efficiency within the Airports Authority. The incident highlighted how operating the country's main airport near full capacity without significant alternatives can cause short disruptions to escalate into tens of millions of shekels in damage.

Read the original at Maariv
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