Government weighs NIS 9m. assistance after flydubai suspends Israel flights - analysis

OCTOBER 6, 2026 14:14The government is expected to approve on Tuesday an assistance mechanism of up to NIS 9 million for Israeli airlines operating flights from Dubai to Israel, after flydubai suspended flights and left thousands of Israelis without a way to return home.Under the proposed resolution circulated to ministers by the Transportation Ministry, the state would, if necessary, help cover the cost of flying empty aircraft from Israel to Dubai and would also fund the transfer of passengers' baggage to Israel on separate cargo flights.Flydubai is normally permitted to operate scheduled flights between Dubai and Israel, and according to the document, the possibility of returning through intermediate destinations is also limited because flights offering onward connections have insufficient capacity.Thousands of Israelis who relied on the airline's flights were left in Dubai without a solution.Israeli airlines began operating flights to bring citizens home on Friday, but security restrictions have made the operation complex and expensive. Under instructions from the relevant authorities, aircraft must fly from Israel to Dubai without passengers, while passengers' baggage currently cannot be loaded into the aircraft hold on the return flights.Media and loved ones await the passengers from the flydubai rescue flight for hijacked flight FZ1073 following its arrival in Israel on September 30, 2026. (credit: AVSHALOM SASSONI/MAARIV)The Transportation Ministry has expressed concern that the cost of the empty outbound leg will make the flights economically unviable and lead airlines to operate fewer flights than required.The Transportation Ministry's proposed solution is a safety net for the airlines. Israelis seeking to return home will continue purchasing tickets from the airlines as usual, while the state will contribute toward the expenses only if passenger revenue does not cover the cost of the flight.The assistance will not exceed the costs resulting from the requirement to operate the empty flights or from the need to transport baggage separately. The mechanism is intended to allow flights to continue at the necessary volume without subsidizing services that would already be economically viable.The Civil Aviation Authority will publish procedures setting out the conditions for receiving the assistance, including limits on its duration and scope, as well as a cap on the cost of each flight segment. The document stresses that the decision does not automatically entitle airlines to receive assistance and does not grant any right to the traveling public.UAE demanded Israel make arrangements for passengers' baggageA separate solution is also required for passengers' luggage. Following a demand by the United Arab Emirates that arrangements be made for the baggage of passengers leaving Dubai, the Transportation Ministry will work through the Defense Ministry to bring the luggage to Israel on separate cargo aircraft.The arrangement will remain in place until security procedures allow baggage to be loaded onto passenger flights or until an alternative solution is found, but in any case no longer than the duration of the government decision. The Transportation Ministry will fund the service through the Defense Ministry.The total cost of the measure will be capped at NIS 9 million. NIS 5.5 million will come from funds allocated under a government decision to implement coalition agreements in 2026. As a result, the amount allocated under the relevant budget item will be reduced from NIS 6 million to NIS 500,000.A further NIS 3.5 million will come from the Transportation Ministry's budget. The arrangement will remain in effect until Thursday or until flydubai resumes flights to Israel, whichever comes first. The Civil Aviation Authority will notify the airlines accordingly and ask them to inform passengers of the relevant date.Finance, defense ministers agree to civil aviation authority's proposalThe finance and defense ministers have agreed to the proposal. Because it is being brought before the government during an election period, the government also examined its legal permissibility.The legal opinion attached to the proposal states that, during such a period, an outgoing government must exercise "restraint and moderation" in using its powers on matters not subject to particular necessity or urgency.In this case, however, the Transportation Ministry's legal adviser determined that the decision was necessary because of the exceptional circumstances created by the incident, the need for a rapid solution, the short duration of the assistance and its limited scope.Accordingly, the opinion concluded that "there is no legal impediment to approving the proposal at this time."The government used a similar mechanism earlier this year. In July, following Operation Roaring Lion, the government approved financial assistance for Israeli airlines on a larger scale.Follow us on Google