Israel parliamentary panel demands state compensation for Israelis stranded during Iran war
FILE PHOTO: Aircraft belonging to Israel's state carrier El Al and Israir among other airlines, are parked at Larnaca International Airport, in Larnaca, Cyprus June 16, 2025. REUTERS/Yiannis Kourtoglou/File Photo
JERUSALEM - The head of an Israeli parliamentary committee told the Finance Ministry on Thursday to come up with a compensation plan by next week for Israelis stranded abroad during last month's war with Iran or the panel would impose one.
Tens of thousands of Israelis were unable to return to the country for much of the 12-day conflict that began in mid-June since Israel's airspace was largely closed due to daily incoming rocket fire from Iran.
Both foreign and Israeli carriers were forced to halt flights to Tel Aviv. Many stranded travellers incurred heavy costs despite either receiving money back for the cancelled flights or a seat on a so-called rescue flight from one of Israel's airlines.
The Economic Affairs Committee has been debating the issue for a week and representatives from Israel's carriers said they have received increasing numbers of compensation claims.
A Finance Ministry representative told the committee that the ministry was reviewing data to propose a compensation framework.
"If the Finance Ministry doesn't complete its review soon, the committee will issue a decision that, in cases of third-party claims, could serve as a basis for the courts to hold the state liable," said David Bitan, head of the economics committee and a member of Prime Minister Benjamin Netanyahu's Likud party.
"I can make that decision – but I want a compromise."
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Uri Sirkis, CEO of Israeli carrier Israir, said he worried that under a final framework airlines would not be compensated.
"We've suffered millions in damages. This wasn't a commercial incident or error, and there's no reason for us to bear it alone," he told the panel, referring to the Israel-Iran war.
Oz Berlowitz, CEO of Israir rival Arkia Airlines, also accused the state of shirking its responsibility, leaving airlines and citizens without support.
"We are receiving hundreds of claims and will have to pass them on to the state as a third party if we are forced to pay compensation," he said, adding that passenger claims amounted to millions of dollars. REUTERS
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