Aviation Services Law: A Comprehensive List of Passenger Benefits and Compensation

This article explains the Israeli Aviation Services Law and the monetary compensation claimable through small claims courts.

The Aviation Services Law of 2012 consolidates and adapts international aviation conventions. While these conventions had long governed the field, the lack of specific national legislation led to inconsistent application. Following extensive deliberation, in 2012, MK Ahmad Tibi proposed and passed the Aviation Services Law, addressing loopholes concerning airline obligations and passenger rights. This law applies to all flights entering and departing from Israel, including stopovers.

This article details the benefits and compensation to which passengers are entitled under the following circumstances:

1. Refusal to Board: The passenger holds a ticket, but the airline or organizer refuses to transport them (often due to overbooking).
2. Flight Cancellation: The airline cancels the flight, or the flight is delayed by 8 hours or more (and is thus considered cancelled).
3. Flight Delay: The flight is delayed by 2 to 8 hours beyond the scheduled time.
4. Flight Advancement: The flight is advanced by at least 5 hours before the scheduled time.
5. Change of Ticket Conditions: The passenger is transferred from one class to a different class.

1. Refusal to Board

Under international law, airlines or their organizers may overbook; selling more tickets than available seats. This practice aims to mitigate losses from passenger cancellations. In case of refusal to board due to overbooking, the airline must check for willing passengers to relinquish their seats in exchange for agreed compensation. If volunteers are found, excellent. Otherwise, the airline may refuse to board specific passengers at its discretion. These passengers are entitled to the following benefits and compensation (except for exceptions detailed below):

1. Free Assistance Services

• Food and beverages according to waiting time;
• Accommodation (if a longer stay than originally planned is required, including overnight stays or more);
• Return transportation (from the airport to the accommodation or another reasonable location of the passenger’s choice, and back);
• Communication services (two phone calls and a fax or email, at the passenger’s choice).

2. Refund or Alternative Ticket

• Refund: Passengers denied boarding are entitled to a refund of the ticket price, including all fees and charges. The refund must be processed within 21 days of the passenger or their travel agent’s written request.
• Alternatively, an alternative ticket: Passengers who decline a refund are entitled to request and receive an alternative flight (receiving an alternative ticket will reduce the compensation received – see section 3 below).

3. Monetary Compensation based on Flight Distance (in km):

• Up to 2,000 km – 1,440 ₪
• Up to 4,500 km – 2,310 ₪
• Over 4,500 km – 3,460 ₪

(*Amounts current as of January 2024)

If a passenger is denied boarding and accepts an alternative flight, the airline/organizer may pay only half of the compensation detailed above, provided the delay in arrival at the final destination (compared to the original schedule) is as follows:

• Up to 4 hours delay – if the flight distance is no more than 2,000 km;
• Up to 5 hours delay – if the flight distance is between 2,000 km and 4,500 km;
• Up to 6 hours delay – if the flight distance is over 4,500 km

Click here for situations where a passenger will not be entitled to compensation or benefits despite being denied boarding.

Click here to return to the list of five situations entitling the passenger to compensation and benefits.

2. Flight Cancellation

“Flight Cancellation” means either: (1) a flight that did not operate; (2) a flight that departed at least 8 hours later than scheduled. Passengers whose flights are cancelled are entitled to the following benefits:

• Food and beverages according to waiting time;
• Accommodation (if a longer stay than originally planned is required, including overnight stays or more);
• Return transportation (from the airport to the accommodation or another reasonable location of the passenger’s choice, and back);
• Communication services (two phone calls and a fax or email, at the passenger’s choice).
• Monetary compensation based on flight distance (amounts correct for 2024):
  • Up to 2,000 km – 1,440 ₪
  • Up to 4,500 km – 2,310 ₪
  • Over 4,500 km – 3,460 ₪

Click here for situations where a “cancelled flight” will not entitle the passenger to compensation.

Click here to return to the list of five situations entitling the passenger to compensation and benefits.

3. Flight Delay

• Delay of at least two hours: (a) Food and beverages according to waiting time; (b) Communication services (two phone calls and a fax or email, at the passenger’s choice).
• Delay of more than 5 hours but less than 8 hours: Refund or alternative ticket, at the passenger’s choice. If the passenger chooses an alternative ticket and the flight departs the following day, the passenger is also entitled to accommodation and return transportation. That is, transportation from the airport to the accommodation or another reasonable location of the passenger’s choice and back.
• Delay of more than 5 hours and less than 8 hours, but the cause of the delay is a protected strike or lockout – Only these benefits: refund, food, beverages, and communication services.
• Delay of more than 8 hours: Will be considered a cancelled flight.

Click here for situations where a flight delay will not entitle the passenger to benefits.

Click here to return to the list of five situations entitling the passenger to compensation and benefits.

4. Flight Advancement

• If the flight is advanced by more than 5 hours but less than 8 hours: Provided the passenger received notification from the airline/organizer/travel agency more than 14 days before the flight – refund or alternative ticket at the passenger’s choice.
• If the flight is advanced by more than 8 hours:
• Refund or alternative ticket;
• Monetary compensation based on flight distance in km (except for exceptions; correct for 2024):
  • Up to 2,000 km – 1,440 ₪
  • Up to 4,500 km – 2,310 ₪
  • Over 4,500 km – 3,460 ₪(*Amounts current as of January 2024)

Click here for situations where a flight advancement will not entitle the passenger to compensation or benefits.

Click here to return to the list of five situations entitling the passenger to compensation and benefits.

5. Change of Ticket Conditions

Upgrading to a higher class than specified on the ticket prevents the airline from demanding further payment from the passenger.

Downgrading to a lower class entitles the passenger to compensation as follows:

• Downgrade from First Class to Business Class – 60% of the ticket price paid
• Downgrade from Business Class to Economy Class – 80% of the ticket price paid
• Downgrade from First Class to Economy Class – 90% of the ticket price paid
• Downgrade from First or Business Class to Economy Class on a flight exceeding 4,500 km – 100% of the ticket price paid.

Note! If a connecting flight is involved, the compensation amount will be: the ticket price paid multiplied by the ratio of the distance of the downgraded portion of the flight to the total flight distance.

Click here for situations where a ticket change will not entitle the passenger to compensation or benefits.

Click here to return to the list of five situations entitling the passenger to compensation and benefits.

When and How Will the Airline Pay Compensation?

• For compensation due to a change in ticket conditions: The airline must pay within 21 days of the flight date, in cash, bank transfer, or check. If the passenger explicitly agrees in writing, via traveler’s checks or another agreed-upon method.
• For compensation due to other reasons: The airline must pay within 45 days of the passenger or travel agent’s written request, in cash, bank transfer, or check. If the passenger explicitly agrees in writing, via traveler’s checks or another agreed-upon method.

Airline Failed to Provide Compensation or Benefits? Up to 11,540 ₪ Compensation Without Proof of Damages

The above situations obligate the airline to provide benefits and/or compensation without the need for legal action. However, if an airline fails to meet its obligations and no exceptions apply, a passenger may file a claim. The claim may include compensation without proof of damage under the Aviation Services Law, up to 11,540 ₪ (as of 2024).

Compensation without proof of damage (“exemplary damages”) requires demonstrating that the airline breached its obligations. The claimant need not provide evidence of specific damages resulting from the breach. However, courts will assess damages based on an estimation and life experience to determine the appropriate compensation amount. Therefore, it is advisable for the claimant to detail their damages in the claim (such as non-monetary damage in the form of distress); and provide supporting evidence where possible.

Important: The mechanism for awarding compensation without proof of damage under the Aviation Services Law is optional. Its purpose is to assist passengers wronged and seeking redress. However, passengers are not limited to this compensation cap! How? By filing a claim under other laws; or – under the Aviation Services Law without requesting “exemplary damages”.

The mechanism for awarding compensation without proof of damage has advantages and disadvantages: on the one hand, the passenger does not need to present evidence or witnesses to prove compensable damages. It suffices to show a breach of the airline’s obligations. On the other hand, the compensation is capped. Case law establishes that one cannot claim both with and without proof of damage; it is one or the other. A possible solution is to file a claim with alternative remedies. For example, a claim for compensation supported by proven damages; and alternatively – a claim for compensation without proof of damage.

How Long Do You Have to File a Claim Under the Aviation Services Law?

Claims must be filed within four years of the relevant event; afterwards, the claim is time-barred. However, it is advisable not to wait until the last minute to file a claim.

Notification Obligation – “Passenger Information”

Passenger information is a notice detailing passenger rights to benefits in four cases: refusal to board, flight delay, flight advancement, or flight cancellation. This is one of the innovations introduced by the Aviation Services Law: not only defining passenger rights but also raising awareness of them. The law requires displaying “passenger information” in a clearly visible and legible location where the airline/organizer receives customers. In addition, the airline/organizer and travel agent are obligated to prominently display this information on their websites.