Israel Finance Ministry Rejects Compensation for 100,000+ Iranians-Stranded Abroad

Israel's Finance Ministry has opposed compensating tens of thousands of Israeli passengers stranded abroad during the closure of Israeli airspace amid the June war with Iran, rejecting plans to allocate hundreds of millions of shekels for compensation. The ministry argues that the Transportation Minister has discretionary authority to limit compensation to just two days, whereas the Transportation Ministry demands compensation for up to five days at about $150 per day per passenger. This disagreement has sparked outrage among Knesset members, airline CEOs, and the public, who highlight the financial burdens on passengers forced to pay for extended stays and costly alternate flights, sometimes at double or triple the normal price. Committee chairman MK David Bitan and others have called the Finance Ministry's refusal unreasonable and urged Prime Minister Benjamin Netanyahu to intervene to reach a fair resolution. Airline leaders warn that without government compensation, Israeli airlines face severe financial losses and potential collapse due to mounting lawsuits. The dispute reflects broader tensions over state responsibility for costs arising from military actions and the legal liabilities airlines might face if compensation is not provided by the government.