The Israeli government is preparing to extend a $5 billion insurance guarantee to Israeli airlines. This move is aimed at enabling carriers like El Al, Arkia, and Israir to continue repatriating Israelis from abroad, amid widespread international flight cancellations to Israel. The Knesset Finance Committee is slated to discuss the wartime insurance guarantee on Thursday morning. Without the state-backed guarantee, Israeli carriers could lose their coverage within seven days of the outbreak of war, in line with the terms of their policy with Inbal Insurance Company Ltd.
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This measure comes in the wake of escalating conflict in the region. Shortly after Hamas’s coordinated attack on Israel, leading to over 900 deaths and more than 2,500 injuries, Inbal put the carriers on notice for potential policy cancellation. Israel’s accountant general, in a letter requesting the Finance Committee, to appropriate the funds, said that “there is a real danger, in the absence of the ability to purchase another insurance plan within the necessary schedules, that within a few days, the airlines will not be able to maintain their current air operations,” given requirements by aircraft leasing companies and aviation authorities to maintain war risk insurance.
As it would require a formal budgetary allocation, the Finance Committee must approve the $5 billion state guarantee, which would cover Inbal’s obligations and costs tied to the provision of war risk insurance. This move will enable El Al, Arkia, and Israir to obtain a wartime insurance policy and keep their fleets in the skies.
The Israeli government's decision to provide a wartime insurance guarantee underscores its commitment to ensuring the safety and well-being of its citizens. It also highlights the critical role that airlines play in times of crisis. As this situation continues to evolve, it remains crucial for airlines and passengers alike to stay informed and prioritize safety.
