Flight Cancellation? Methods of Compensation and Sample Cease and Desist Letter

Flight cancellations in Israel have become increasingly common, initially due to the COVID-19 pandemic and more recently due to heightened security concerns. Foreign airlines have cancelled flights with short notice, leaving many passengers stranded. This not only jeopardizes planned vacations but also necessitates further cancellations or adjustments to hotel bookings and other arrangements.

To address such situations, it is essential to refer to the Israeli Aviation Services Act (Compensation and Assistance for Flight Cancellations or Changes in Terms), 5772-2012, often referred to as the “Tivi Law.” This legislation incorporates various international conventions governing flight cancellations and changes in terms by airlines.

While the law mandates certain benefits and compensation for affected passengers without requiring legal proceedings (requiring only a written request), not all airlines comply. Some, particularly low-cost carriers, often only provide compensation if the passenger insists.

Before resorting to court action, it is advisable to pursue a quicker, less adversarial resolution by sending the airline a formal notice of intent to initiate legal proceedings. This article will outline passenger rights in case of flight cancellation and include a sample letter of warning to the airline.

Which Flights are Covered?

The Aviation Services Act applies to all landings and take-offs to and from Israel, including flights with intermediate stops.

Passenger Rights in Case of Flight Cancellation

1. Free Assistance Services:

• Food and beverages commensurate with waiting time;
• Accommodation (if the stay exceeds the passenger’s planned duration, including overnight stays);
• Return transportation (from the airport to the accommodation or another reasonable location of the passenger’s choice, and back);
• Communication services (two phone calls, plus a fax or email, at the passenger’s choice).

1. Refund or Alternative Ticket.

• Refund: Passengers whose flights are cancelled are entitled to a refund of the ticket price, including all fees and charges. This must be processed within 21 days of the written request by the passenger or their travel agent.
• Alternative Ticket: Passengers whose flights are cancelled and do not wish a refund, may request and receive an alternative flight. (See below for considerations regarding financial compensation if the passenger accepts an alternative flight).

1. Financial Compensation Based on Flight Distance (km):

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

(*Amounts current as of January 2024)

Financial compensation must be paid within 45 days of the passenger’s written request.

Note: If the passenger accepts an alternative flight, the compensation may be reduced by half.

Circumstances Excluding Benefits or Compensation

1. The passenger received adequate notice of re-routing and arrived at their final destination on schedule;
2. The passenger received the ticket free of charge;
3. The ticket was purchased at a special rate not available to the general public (directly or indirectly), except in cases where the ticket was issued to the passenger due to their membership in the airline’s loyalty program.
4. A passenger who has received benefits under foreign law due to circumstances entitling them to compensation will not be entitled to the same benefits under the Aviation Services Act.
5. The flight was cancelled due to extraordinary circumstances beyond the carrier’s control;
6. The flight was cancelled due to a protected strike or lockout;
7. The flight was cancelled to avoid violating the Sabbath or a religious holiday.

Read more about situations where, despite one of the above conditions being met, the passenger may still be entitled to compensation.

Airline Failed to Provide Benefits or Compensation. What are My Rights?

Passengers are entitled to assistance services without needing to submit a request. For refunds or compensation, passengers must submit a written request. If the airline fails to provide benefits or compensation to an eligible passenger, the law provides for compensation without proof of damage up to ILS 11,540 (as of January 2024).

Passengers can file a claim in court (a small claims suit is possible) to claim compensation. Read more about compensation without proof of damage and the possibility of receiving higher compensation.

Required Documents and Sample Letter of Warning

It’s advisable to send a letter of warning before initiating legal proceedings. This often leads to a quicker, less costly, and less contentious resolution.

Before writing the letter, ensure you have the following documents:

1. Flight ticket booking confirmation
2. Proof of payment for flight tickets
3. Copy of the airline’s cancellation notification
4. All relevant communication with the airline regarding the flight
5. Documentation of damages incurred due to cancellation (e.g., financial losses due to cancelled accommodation or activities; lost wages; and any other financial or non-financial damages). While compensation is awarded without proof of damage, any supporting documentation may increase the amount awarded.

Sample letter of warning to an airline following a flight cancellation

Note! Some airlines allow submitting compensation requests via their websites. If this is the case, follow the airline’s specific procedure and include the required documents.

Statute of Limitations for Filing a Claim

The Aviation Services Act establishes a specific limitation period: a claim against the airline can be filed within 4 years of the occurrence of the event giving rise to the claim.

For example, if the flight was cancelled on January 1, 2024, and the passenger sent a request for compensation on the same day, the airline had 45 days to respond. If the airline failed to pay within this period or did not provide a satisfactory explanation, the four-year period begins from the end of these 45 days or the receipt of the airline’s response.

Filing a Small Claims Court Suit Against an Airline

As of January 2024, small claims are limited to ILS 38,900. Therefore, if multiple claimants wish to file a joint claim, the total claim amount is limited to this ceiling.

A small claims suit can be filed free of charge using the court’s form. Many find this process cumbersome. The form requires printing, handwriting, and the fields are unclear or ambiguous. Furthermore, many struggle with online filing through the court’s website (“Net Mishpat”) and find it difficult to file in person.

With Dino’s system, small claims can be generated online from any device using a smart, dynamic questionnaire designed for flight-related claims.

This innovative Israeli system uses pre-designed questionnaires by lawyers that adapt based on user responses. It allows uploading files from any device and organizes them into a structured appendix (without needing to print anything). The average time to generate a claim is about 14 minutes. The system automatically generates a small claims suit complying with court procedures, overcoming procedural and technical hurdles. Users can also purchase a filing service for complete assistance, including generating the claim, paying court fees, and using a legal courier for filing.

Read more about generating and filing a small claims suit with Dino’s smart system.