Israeli Finance Ministry Warns of Severe Aviation Crisis, Criticizes Airport Authority

The Israeli Finance Ministry has issued a stark warning about an impending aviation crisis, projecting that Ben Gurion Airport will reach its maximum capacity of 40 million passengers annually by 2034. This comes amid recent chaos at the airport and anticipated heavy travel loads in the coming weekends. The ministry emphasizes that without accelerating the development of complementary airports, Israel will face severe limitations on flights to and from the country, leading to significant increases in travel costs and overall living expenses.

The ministry highlights that flight prices have already surged dramatically in recent years due to the war and the departure of foreign airlines, citing increases of 47% for flights to Paris, 51% to Dubai, and 33% to New York. It warns that this trend will worsen if new airports are not established promptly. Currently, two alternative airports are being developed: one in Tzoklag in the Negev and another in Ramat David, with capacities of 10 million and 35 million passengers respectively. The Finance Ministry stresses that both must be advanced simultaneously to meet future demand.

In a sharp critique, the ministry accuses the Israel Airports Authority (IAA) of inefficiency and high costs, claiming it contributes to the rising cost of living. The IAA is said to have inflated wages averaging 38,000 shekels per employee, more than double the national average, with employment practices influenced by labor unions that hinder operational flexibility. The ministry argues that these costs consume about 60% of the authority’s expenses and that wage growth has far outpaced passenger and revenue increases.

The Finance Ministry also blames the IAA for frequent disruptions, attributing them to the authority’s control over Israeli airspace and resistance to private operators managing new airports. It doubts the IAA’s ability to develop the new airports efficiently and recommends operating them through private concessionaires, a common global practice that could improve service quality, increase competition, and reduce flight prices.

A legislative proposal to allow private operation of airports was included in the 2026 budget law and passed a preliminary reading. However, due to pressure from IAA labor unions on lawmakers, the bill was split into a regular legislative process, causing significant delays. The IAA has yet to respond to these criticisms.