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

This article explains the Aviation Services Law and the monetary compensation that can be claimed through small claims courts.

The Aviation Services Law of 2012 was enacted as a specialized law incorporating and adapting international conventions in the aviation world. These conventions had been dominant for many years, but in the absence of structured national legislation, states—including Israel—implemented them as they saw fit. After a lengthy period, in 2012, MK Ahmad Tibi proposed and passed the Aviation Services Law, thus closing loopholes concerning the duties of airlines and the rights of passengers. The Aviation Services Law applies to all flights entering and departing from Israel, including stopovers.

This article details the benefits and compensation (monetary compensation) to which passengers are entitled in each of the following situations:

1. Refusal to Board: The passenger was issued a ticket, but the flight operator or organizer refused to board them (usually due to ‘overbooking’).
2. Flight Cancellation: The airline canceled the flight, or the flight was delayed by 8 hours or more (and will then be considered a canceled flight).
3. Flight Delay: The flight was delayed by 2 to 8 hours beyond the time stated on the ticket.
4. Flight Advance: The flight was advanced by at least 5 hours before the time stated on the ticket.
5. Change of Ticket Conditions: The passenger was moved from a certain class to a different class.

1. Refusal to Board a Passenger

Under international law, airlines or their organizers may engage in ‘overbooking’; that is, selling more tickets than seats on the plane. This is done to mitigate the airline’s losses in case of passenger cancellations. In case of refusal to board due to overbooking, the airline must check whether any of the passengers booked on the flight are willing to give up their seat in exchange for an agreed-upon compensation. If volunteers are found who agree to ‘get off the plane’ in exchange for agreed-upon compensation to be paid to them by the airline – excellent. If not, the airline may refuse to board certain passengers at its discretion. These passengers will be entitled to the following benefits and compensation (except for exceptions as detailed below):

1. Free Assistance Services

• Food and beverages according to the waiting time;
• Accommodation (if a stay longer than planned is required, including one night or more);
• Round-trip transportation (from the airport to the aforementioned accommodation or another location within a reasonable distance at the passenger’s choice, and back);
• Communication services (two phone calls and sending a message via fax or email at the passenger’s choice).

2. Refund or Alternative Ticket

• Refund: Passengers who were refused boarding as described will be entitled to a refund of the amount they paid for the ticket, including all payments made for the ticket (fees, levies, taxes, and other mandatory payments). The refund will be made within 21 days of the passenger or the travel agency from which they purchased the ticket contacting the airline in writing and requesting a refund.
• Alternatively, an alternative ticket: Passengers who were refused boarding and do not wish a refund are entitled to request and receive an alternative ticket (and if they received an alternative ticket, there will be a reduction in the compensation they will receive – see Section 3 below).

3. Monetary Compensation according to 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)

Where a passenger was refused boarding and agreed to receive an alternative ticket, the airline/organizer may pay only half of the compensation detailed above, provided that the delay in arrival time at the final destination (compared to the original time) is as detailed below:

• Up to 4 hours delay – if the flight distance does not exceed 2,000 km;
• Up to 5 hours delay – if the flight distance is over 2,000 km and under 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 refused boarding.

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

2. Flight Cancellation

‘Canceled flight’ means one of the following: (1) a flight that did not take place; (2) a flight that departed more than 8 hours late from the time specified on the ticket. A passenger whose flight is canceled will be entitled to the following benefits:

• Food and beverages according to the waiting time;
• Accommodation (if a stay longer than planned is required, including one night or more);
• Round-trip transportation (from the airport to the aforementioned accommodation or another location within a reasonable distance at the passenger’s choice, and back);
• Communication services (two phone calls and sending a message via fax or email at the passenger’s choice).
• Monetary compensation according to 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 ‘canceled 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 the waiting time; (b) Communication services (two phone calls and sending a message via fax or email at the passenger’s choice).
• Delay of over 5 hours and less than 8 hours: Refund or alternative ticket, at the passenger’s choice. If the passenger chose an alternative ticket and the alternative flight departs the following day, the passenger is also entitled to accommodation and round-trip transportation. That is, transportation from the airport to the accommodation or another location within a reasonable distance at the passenger’s choice and back.
• Delay of over 5 hours and less than 8 hours, but the reason for the delay is a strike or protected lockout – only these benefits: refund, food, beverages, and communication services.
• Delay of over 8 hours: Will be considered a ‘canceled 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 Advance

• If the flight was advanced by more than 5 hours but less than 8 hours: If the passenger received notification from the flight operator/organizer/travel agency service provider less than 14 days before the flight date – refund or alternative ticket at the passenger’s choice.
• If the flight was advanced by more than 8 hours:
• Refund or alternative ticket;
• Monetary compensation according to 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 advance will not entitle the passenger to compensation and benefits.

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

5. Change in Flight Ticket

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

Downgrading to a lower class than specified on the ticket 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 stopover (connection) is involved, the compensation amount will be: the ticket price paid (multiplied by) the ratio between the distance of the flight where the passenger was downgraded to a lower class and the total flight distance.

Click here for situations where a ticket change will not entitle the passenger to compensation and 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 the Compensation?

• If compensation for a change in ticket conditions: the airline must pay within 21 days of the flight date. This will be in cash, bank transfer, or check. If the passenger explicitly agreed to this in writing – by traveler’s checks or other agreed-upon means of payment.
• If compensation for another reason: the airline must pay within 45 days of the passenger or travel agency service provider making a written request. This will be in cash, bank transfer, or check. If the passenger explicitly agreed to this in writing – by traveler’s checks or other agreed-upon means of payment.

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

The above situations obligate the airline to provide the passenger with benefits and/or compensation without the need to file a lawsuit. However, if an airline has not fulfilled its obligations and no exception relieving it exists, a passenger may file a lawsuit. In the lawsuit, it is possible to claim, among other things, compensation without proof of damage under the Aviation Services Law, up to a total of 11,540 ₪ (as of 2024).

Compensation without proof of damage (‘exemplary damages’) is exactly what it says. All that needs to be proven is that the airline violated one of its obligations. The claimant does not have to provide evidence that they suffered any damage as a result of the violation. However, it is important to note: the courts do examine, through estimation and life experience, what the damage was and from there determine the amount of compensation. So nothing will happen if the claimant states their damages in the writ of summons (such as a description of non-pecuniary damage in the form of distress); and if possible, also provide evidence.

Important: The mechanism for awarding compensation without proof of damage under the Aviation Services Law is only optional. The purpose of the mechanism is to make it easier for passengers who have been wronged and want to exercise their rights in the courts. However, if a passenger does not wish to be limited to the above compensation ceiling, they certainly can! How? Simple: file a lawsuit under other laws; or – under the Aviation Services Law simply without claiming ‘exemplary damages’.

The mechanism for awarding compensation without proof of damage has advantages and disadvantages: On the one hand, the passenger does not have to start bringing evidence and dragging witnesses to court to prove that they suffered compensable damage. It is enough for them to show that the airline violated one of its obligations. On the other hand, the amount of compensation is limited by a statutory ceiling (that is, a compensation ceiling stipulated by law). Case law establishes that it is not possible to claim a remedy both with and without proof of damage; it’s ‘either/or’. A possible solution: to file a lawsuit with alternative remedies. For example, a claim for compensation in an amount supported by damages with proof of damage; and alternatively – a claim for monetary compensation without proof of damage.

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

Within 4 years of the events for which you wish to file the lawsuit; after that, the lawsuit is time-barred. However, it is preferable not to wait until the last moment to file a lawsuit and ‘strike while the iron is hot’.

Notification and Disclosure Obligation – ‘Passenger Information’

Passenger information is a notice detailing the passenger’s rights to benefits in four cases: refusal to board, flight delay, flight advance, or flight cancellation. This is one of the innovations introduced by the Aviation Services Law: not only to define passenger rights but also to raise awareness of them. The law requires the display of ‘passenger information’ where the flight operator/organizer receives the public. And this, in a visible place and in clear and legible lettering. In addition, flight operators and/or organizers and travel agency service providers are required to publish passenger information on their websites; also prominently.