The government has approved an assistance plan worth up to NIS 55 million for Israeli airlines, compensating them for the cost of operating empty flights during Operation Roaring Lion amid security, safety, and operational restrictions imposed on aviation activity in Israel.
During the operation, airlines were required to fly aircraft abroad without passengers for parking and repositioning purposes, among other reasons, due to restrictions on passenger numbers, limits on the amount of time aircraft could remain at Ben Gurion Airport, and a shortage of available parking space. Much of the airport’s parking capacity was occupied by American aircraft.
The airlines incurred significant additional expenses as a result of these measures, which could not be offset by ticket sales.
Under the approved plan, the total scope of government assistance will reach up to NIS 55 million in 2026. The compensation mechanism will be developed by the Transport Ministry through the Civil Aviation Authority, pending approval from the Finance Ministry.
Compensation Tied to Dividend Freeze and Shareholder Investment
The aid will be provided in two stages. In the first stage, airlines will be eligible to receive reimbursement of 33.5% of recognized expenses, on the condition that they refrain from distributing dividends for one year.
In the second stage, companies will be able to receive an additional reimbursement of up to 33.5%, provided that shareholders inject an equivalent amount of equity into the company, matching the state’s contribution. Overall, the compensation may cover up to approximately two-thirds of eligible expenses.
Transportation Minister Miri Regev said: “Israeli airlines have once again proven that they are a strategic asset for the State of Israel, and that in times of emergency they serve as a vital component in maintaining the country’s aviation and transportation continuity. The government’s decision reflects our commitment to helping them bear the extraordinary costs imposed on them, while balancing the need to support the industry with the responsibility to use public funds wisely.”
Finance Minister Bezalel Smotrich added: “Israeli airlines constitute a significant strategic pillar of our national resilience, especially during times of war. We have formulated a balanced assistance plan that combines necessary government support with business responsibility on the part of shareholders.”