Israel’s District Court has handed Israir a significant legal victory, overturning a lower court ruling that ordered the airline to pay approximately NIS 21,000 (about $6,000) in compensation to two passengers whose flight was delayed by just over five hours.

In a decision that could have broad implications for future airline compensation claims, Judge Tamar Bar-Asher ruled that the original lawsuit was “excessive and inflated” and canceled all compensation awarded against the airline.

The case stemmed from a couple who purchased tickets to Budapest for approximately $440. One day before departure, Israir informed them that, due to the security situation, their flight schedule had changed and they had been rebooked on another flight departing the same day approximately 5½ hours later.

Rather than take the replacement flight, the couple chose not to travel and sued the airline for NIS 29,000. A Small Claims Court partially accepted their claim and awarded them roughly NIS 21,000 in damages.

Israir appealed the decision, arguing that under Israel’s Aviation Services Law, a flight is considered “canceled” only if it does not operate at all or departs at least eight hours later than originally scheduled.

The District Court agreed.

Judge Bar-Asher wrote that awarding NIS 21,000 over a transaction worth roughly NIS 1,190 “is an unreasonable and disproportionate result that has no place.” She further described the lawsuit itself as “excessive and inflated” and overturned the entire judgment against the airline.

The ruling clarifies that passengers are not automatically entitled to statutory compensation for relatively minor schedule changes, particularly those resulting from extraordinary circumstances such as security-related disruptions.

(YWN World Headquarters – NYC)