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

This article covers the Aviation Services Law. It explains monetary compensation in small claims court.

The Aviation Services Law (2012) is specialized legislation. It incorporates global aviation conventions. These conventions long dominated. But, without national laws, states, including Israel, applied them inconsistently. In 2012, MK Ahmad Tibi proposed the law. It closed gaps in airline duties and passenger rights. This law covers all flights. It applies to flights entering, departing, and stopping in Israel.

This article details passenger benefits and compensation. It outlines rights for 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

Upgrades

Upgrading a passenger to a higher class is final. The airline cannot demand extra payment.

Downgrades

If a passenger is downgraded, they get compensation. This applies when moved to a lower class.

• Downgrade from first class to business class – 60% of the ticket price paid</li>
• Downgrade from business class to economy class – 80% of the ticket price paid
• Downgrade from first class t
• o 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.</strong>

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?

Compensation for Ticket Changes

For ticket changes, the airline must pay within 21 days of the flight. Payment will be cash, bank transfer, or check. If the passenger agrees in writing, other methods are possible. This includes traveler’s checks or other agreed means.

Compensation for Other Reasons

For other compensation, the airline pays within 45 days. This starts from the passenger’s or agency’s written request. Payment will be cash, bank transfer, or check. If the passenger explicitly agrees in writing, traveler’s checks or other means can be used.

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

Airlines must provide benefits or compensation. This is often without a lawsuit. If an airline fails its duties, and no exceptions apply, passengers can sue. They may claim compensation without proof of damage. Under the Aviation Services Law, this can be up to ₪11,540 (2024).

Exemplary damages: Compensation without proof. If an airline violates its obligations, compensation may be due. No need to prove direct damage. Courts estimate damages based on experience. Claimants can describe non-pecuniary damage, like distress, in the summons. Providing evidence is helpful.

This compensation mechanism under the Aviation Services Law is optional. It simplifies court access for wronged passengers. Passengers can pursue claims under other laws or omit “exemplary damages” under the Aviation Services Law for broader compensation.

This mechanism has pros and cons. Passengers avoid proving specific damages or calling witnesses; only an airline’s violation is needed. However, compensation is capped by law. Case law dictates “either/or” for claiming with or without proof. A solution: file with alternative remedies. For instance, claim compensation supported by proven damages, or, alternatively, claim monetary compensation without proof.

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

You have four years to file a lawsuit. After that, it’s too late. Don’t wait until the last moment. It’s best to act quickly.

Notification and Disclosure Obligation – ‘Passenger Information’

Passenger information details your rights. It covers four cases: denied boarding, flight delay, early flight, or cancellation. This notice is a key innovation. The Aviation Services Law defines and raises awareness of rights. Operators must display ‘passenger information.’ It needs to be visible. Use clear, legible lettering. Flight operators, organizers, and travel agencies must publish this online. It also needs prominent placement on websites.