Israeli Finance Ministry Estimates 30 Million Shekel Loss from Ben Gurion Airport Strike
The Israeli Finance Ministry estimates that the economic damage caused by the strike at Ben Gurion Airport today amounts to between 25 and 30 million shekels. The losses include passenger time delays, direct and operational costs to airlines, lost revenues for the Israel Airports Authority and airport operators, disruptions in cargo and courier services, and harm to the tourism and hotel sectors.
The ministry identifies three structural issues underlying recurring disruptions: the very limited aviation infrastructure capacity in Israel, complete dependence on a single airport, and the powerful Israel Airports Authority workers' union, which allegedly hinders efficiency, flexibility, and development. Ben Gurion Airport is currently operating at its maximum daily capacity, and complementary airports could increase overall capacity and provide alternatives during strikes or operational failures. However, development plans for these additional airports have been delayed.
The Finance Ministry also criticizes the Israel Airports Authority as a monopoly controlling all operational roles through a strong workers' union, enabling a single entity to shut down the country's main gateway. The ministry argues that competition between multiple airport operators is necessary to prevent such total shutdowns driven by business or other interests.
Regarding employment structure, the ministry claims that wages at the Israel Airports Authority are significantly higher than the national average, and extensive use of in-house staff rather than external contractors reduces flexibility during peak times. High ongoing costs, especially wages accounting for about 60% of the authority's expenses, limit the ability to advance development plans and harm service quality.
To prevent future crises, the Finance Ministry calls for approval of plans to build additional airports at Ramat David and Tzoklag, maximizing Ben Gurion's capacity within existing infrastructure, implementing government decisions to allow private entities to operate airports, and transforming the Israel Airports Authority into a regulatory and supervisory body rather than an operational one.
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