Economic Committee Opposes Finance Ministry: Demands Compensation for Passengers Stranded Abroad During “Operation With a Lion’s Heart”
Finance Minister Opposes Compensation Plan – Economic Committee Members Urge Prime Minister to Intervene and Formulate a Fair Plan for Passengers and Airlines
Knesset Spokesperson:
The Knesset Economic Committee, chaired by MK David Bitan, held another heated discussion today (11/08/2025) on the issue of compensations for passengers forced to remain abroad due to “Operation With a Lion’s Heart,” as well as for airlines that operated according to state directives and incurred millions in losses.
At the center of the discussion was the Finance Minister’s opposition to the compensation plan for passengers stranded abroad during Operation With a Lion’s Heart, arguing that the budgetary cost is too high – hundreds of millions of shekels.
Finance Ministry: “We Oppose – The Transport Minister Has Authority to Limit to Two Days Only”
Daniel Schwartz, a representative from the Budget Department at the Finance Ministry, explained during the discussion:
“Following the discussions, the Finance Minister decided to oppose the compensation plan. The Transport Minister has the authority to limit the compensation to two days only and can decide accordingly at her discretion.”
These remarks sparked strong reactions from Knesset members. Committee Chairman MK David Bitan retorted:
“Do you think it is reasonable for the state not to take responsibility for citizens stranded abroad? What budgetary cost did you present to the Minister? You compensate the workers, the entire economy – but not the airlines and citizens who were stranded?”
CAA: “The State Should Compensate for Three Additional Days”
CAA Director, Shmuel Zakai, clarified:
“The Minister’s position is that two days are not sufficient. The state should compensate for three additional days. Without the state’s participation, the Transport Minister will not sign the order.”
However, Schwartz replied that “the cost is estimated at hundreds of millions of shekels or more, depending on various parameters and the number of nights. There is no room for a dedicated compensation framework for the sector.”
Knesset Members Criticize the Finance Minister: “Ignoring the Citizens”
Knesset Member Vladimir Beliak criticized:
“The state initiated the action, it must compensate the citizens. I proposed a framework that would have cost only 250–300 million shekels. At the same time, the Finance Minister found 3.7 billion shekels to transfer to Gaza. If it were the residents of Kedumim, he would have acted differently. This is a disconnected and arrogant Finance Minister.”
Knesset Member Sheli Tal Miron added:
“If the Finance Ministry’s representative does not present the alternatives brought to the minister, there is something to hide. The citizen has no support, and if you’re not in the base, you don’t exist. The state could have set aside money in advance.”
MK Efrat Rayten warned:
“More damage to Israeli society. Instead of a solution, companies will be dragged into dozens of lawsuits. Insurance companies will also be affected. The Treasury chose the automatic ‘no’.”
Airlines: “They Sent Us – Now They Are Backing Out”
Representatives of Israeli airlines also participated in the discussion, presenting a very difficult reality:
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Attorney Raz Nazri, on behalf of Arkia:
“It could have been said from the start. This is a clear case that requires a compensation framework – otherwise, we will pay dearly through lawsuits.” -
Oz Berlovich, CEO of Arkia:
“We are mistreating passengers without a response. Piles of lawsuits have already arrived. The Minister of Transport is holding a discussion today about a base for Wizz Air, which was the first to flee the war – it’s cynical. I sent a letter to the Prime Minister – and received no response.” -
Uri Sirkis, CEO of Israir:
“We canceled dozens of flights, transferred planes abroad. Every day, claims worth tens of millions are received. An immediate solution and legislation to protect us are required – because the court claims we canceled.” -
Shlomi Zafrani, El Al:
“The consumer public is thrown time and again without a response. It’s time to decide.”
Economic Committee Decision: The State is Responsible for Compensation
After consultations, the Economic Committee voted on a resolution proposal that was unanimously accepted. Main points of the decision:
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The government did not present a compensation framework, despite repeated calls.
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Since it is a state-initiated airspace closure, the responsibility for compensation lies with it – as is customary in war damage compensation.
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The absence of a framework will lead to dozens of lawsuits, heavy costs, and the risk of the collapse of Israeli companies.
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Compensation should be shared between the state, airlines, and passengers, but in the current situation – the state bears full responsibility.
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It is unacceptable for citizens to pay out of pocket for a military operation without assistance or compensation.
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The committee demands that the Prime Minister delve into the matter and formulate a framework for compensating passengers stranded abroad during Operation With Allavi, as well as for airlines – without delay.
MK Bitan concluded sharply:
“This is a scandal. You know that in the end, the state will pay, but it will happen in years, and at a much higher cost. We will formulate a decision that will be used against you in the courts.”
