Flight Cancelled? Avenues, ompensation, Sample 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 long-awaited vacations but also necessitates cancellations or changes to other arrangements, from hotel bookings to planned activities.

To address such situations, passengers should refer to the Israeli Aviation Services Law (Compensation and Assistance for Flight Cancellations or Changes in Conditions), 5772-2012, also known as the “Tivi Law.” This law incorporates various international conventions governing flight cancellations or changes made by airlines.

While the law mandates certain benefits and compensations for affected passengers without requiring legal action (beyond submitting a claim), not all airlines comply. Some, particularly low-cost carriers, often resist providing compensation unless passengers actively pursue it.

Before initiating legal proceedings, consider sending a letter of demand to the airline to resolve the matter efficiently and amicably. This article outlines passenger rights in case of flight cancellations and includes a sample letter of demand.

Applicability of the Aviation Services Law

The Aviation Services Law applies to all landings and take-offs within and from Israel, including flights with intermediate stops (both domestic and international flights operated by foreign airlines).

Passenger Rights in Case of Flight Cancellation

1. Free Assistance Services:

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

1. Refund or Alternative Ticket.

• Refund: Passengers whose flights are cancelled are entitled to a refund of the full ticket price, including all associated fees, charges, taxes, and other mandatory payments. The refund must be issued within 21 days of the passenger or travel agency submitting a written request to the airline.
• Alternative Ticket: Passengers whose flights are cancelled and do not wish a refund may request and receive an alternative flight (see below regarding the reduction of financial compensation if the passenger accepts an alternative flight).

1. Financial Compensation Based on Flight Distance (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)

Financial compensation must be paid to the passenger within 45 days of the passenger submitting a written request to the airline.

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

Situations Excluding Benefits or Compensation in Case of Flight Cancellation

1. The passenger received due notice from the carrier, organizer, or travel agent regarding transfer to another flight and reached their final destination by the original time;
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 membership in a loyalty program of the carrier/organizer;
4. A passenger who received benefits under foreign law due to circumstances giving rise to an entitlement will not be entitled to benefits of the same type under the Aviation Services Law;
5. The flight was cancelled due to extraordinary circumstances beyond the carrier’s/organizer’s control, even if they had done everything in their power to prevent the cancellation;
6. The flight was cancelled due to protected strikes or lockouts;
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, passengers may still be entitled to compensation.

Airline Failed to Provide Benefits or Compensation. What are my rights?

Passengers are entitled to assistance services without submitting a request. For refunds or compensation, passengers must submit a written claim. If the airline fails to provide benefits or compensation to a passenger who meets the eligibility criteria, the law provides for compensation without proof of damages up to 11,540 ₪ (as of January 2024).

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

Required Documents for Compensation and Sample Letter of Demand

It is advisable to send a letter of demand before initiating legal proceedings. This may expedite a resolution more efficiently and amicably, avoiding unnecessary costs.

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 notification of flight cancellation
4. Documentation of all relevant communication with the airline regarding the flight
5. Evidence of damages incurred due to the flight cancellation (e.g., financial losses from cancelled accommodation or activities; loss of wages or income; and any other financial or non-financial damages). While this is compensation without proof of damage, any documentation supporting claims of damage may increase the compensation amount.

Sample Letter of Demand to an Airline Following a Flight Cancellation

Note! Some airlines allow submitting compensation claims through their websites. If so, follow the airline’s procedure and include any specifically required documents.

Statute of Limitations for Filing a Claim Against an Airline

The Aviation Services Law specifies a specific statute of limitations: claims against the airline can be filed within 4 years from the date the cause of action arises.

For example: If the flight was cancelled on 01/01/2024, and the passenger submitted a compensation claim on the same day, the airline had 45 days to respond. If the airline failed to pay or provide a sufficient explanation, the four-year period begins 45 days from the date of the request or receipt of the airline’s response.

Filing a Small Claims Court Claim Against an Airline

As of January 2024, small claims are limited to 38,900 ₪. If multiple plaintiffs wish to file a joint claim, the total amount is capped at this limit.

Small claims can be filed free of charge using the Judicial Authority’s form. Many find this process cumbersome, requiring printing, handwriting, and navigating unclear or ambiguous form fields. Additionally, many struggle to file claims online through the “Net Mishpat” judicial authority website or to manually file in court.

With Dino’s system, you can create a small claims court claim online from any device using an intelligent and dynamic questionnaire tailored for aviation claims.

This innovative Israeli system includes pre-designed questionnaires created by lawyers, which adapt to user responses. The system allows uploading files from any device and organizes them into a structured appendix (no printing required). The average time to create a small claims court claim is approximately 14 minutes. A fully automated small claims court claim compliant with court procedures is generated. This system helps overcome technical and procedural barriers to creating the claim. Those who wish may also purchase a filing service, providing a comprehensive solution including claim generation, court fee payment, and legal courier services for filing.

Read more about generating and filing small claims using Dino’s intelligent system.