With the outbreak of the war, most foreign airlines canceled their flights to Israel. As we have published here in the past, one of the main reasons for the cancellation of foreign airlines is the issue of insurance, which has become very expensive as a result of the war. Now, a plan is being formulated that is supposed to help solve the problem for foreign airlines that wish to come to Israel and refrain from doing so due to the insurance issue.
At the same time, Blue Bird sent a strongly worded letter to the Ministry of Finance and Transport requesting that it be included alongside Israeli airlines that continue to fly without payment (the same clause that makes insurance more expensive), following the fact that the State of Israel has taken responsibility for the matter.
The flight from Saudi Arabia lands in Israel // Photo: Israel Airports Authority
Adv. Shirley Katzir, partner and Head of the Aviation, Tourism and Hotel Department at Fisher, has formed several large and very significant airlines and sent a letter to the Ministry of Finance on their behalf. In the letter, she emphasized the importance of foreign airlines in Israel, "The cessation of activity of foreign airlines in Israel, for such a long period of time, has a broad and considerable impact."
In a letter sent to the Ministry of Finance, they were asked to find an outline that would allow foreign airlines to return to Israel. It now appears that the Ministry of Finance, together with the Ministry of Transport, are working on an outline that will allow foreign airlines, those interested in returning to work in Israel, to do so through state intervention. Israel Hayom has learned that some of the airlines that signed on to the move are large European companies, Americans, companies from the Balkans and Kazakhstan, companies from the United Arab Emirates and the Gulf states.
Ministry of Finance (Archive), photo: Oren Ben Hakon
Sources involved in the move clarify, "If the Transportation Ministry thinks it's safe to fly to Israel, after all, Israeli airlines are allowed to fly, then why shouldn't there also be guarantors for foreign airlines? If the belief is that it is safe to fly to Israel, then there is no problem in guaranteeing them as well, thereby increasing supply, allowing people to fly at more reasonable prices than those charged today, allowing Israeli employees of foreign airlines to return to work and returning the industry to a kind of routine, this is our victory."
Adv. Katzir commented on the move: "Following our requests, an official dialogue was established with the Ministry of Finance and Transport and there is willingness on the part of the state to find an appropriate outline that allows the resumption of commercial flights to Israel by foreign airlines. The outline will include the possibility of small and discounted financial participation by foreign airlines in the required insurance with a guarantee from the Ministry of Finance, or using the budget of the Ministry of Transport and the Airports Authority to renew flights by foreign airlines."
Cypriot company TUS is also interested in insurance coverage, photo: Coco
Blue Bird airplane, photo: Blue Bird
At the same time, Blue Bird sent a letter to the Ministries of Transport and Finance, demanding that the State of Israel not discriminate against it and grant it the same insurance coverage as Israeli airlines, and the Cypriot TUS company is also interested in returning to Israel if it is approved for the same insurance coverage. Both of these airlines are partially or wholly owned by Israel and their main operations are to and from Israel. Blue Bird hopes to receive a positive response in the coming days, and if a decision is made to help it, it may have a broader impact on other foreign airlines as well.
Sources in the aviation industry claim that "it feels very bad that the State of Israel makes sure to pay the Israeli airlines for the same insurance coverage, but the foreign airlines have to pay for it themselves. This creates a situation in which Israeli airlines can continue to fly more lucratively, while foreign airlines have to pay a lot of money, a fee that in quite a few cases makes flights to Israel unprofitable. Thus, the market becomes one in which the vast majority of flights to and from Israel are operated by Israeli airlines, there is no competition."
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