The war on the Gaza Strip continues to exacerbate the economic crises for various branches and sectors of the Israeli market. As the tourism industry continues to record financial losses and a decline in inbound tourism, Ben Gurion Airport in Tel Aviv has initiated austerity measures, including salary cuts for all employees and workers, sending hundreds on unpaid leave, and reducing services of manpower companies associated with it.
In the context of the austerity and downsizing plan unveiled by Israel Hayom newspaper, the Israeli Airports Authority conducted discussions with employees on Monday, informing them of the decision to place about 600 of them on indefinite unpaid leave.
According to the plan, the financial allocations for approximately 1,000 employees and workers will be cut by about 25%, while the manpower companies at the airport will face reductions of around 50%. The Airports Authority has avoided affecting the employment conditions of approximately 1,000 other employees who currently serve in the Israeli Army reserves.
The newspaper highlighted that the employees placed on unpaid leave or whose jobs will be terminated come from various departments of the Airports Authority, including handling, sorting, security, and others responsible for the operation of Israel's main airport.
On a regular day, nearly 4,600 employees work at Ben Gurion Airport around the clock, of which about 3,000 will remain in their positions following the recent decision.
Ben Gurion Airport is almost empty of passengers (Anadolu Agency).
Austerity Plan
The newspaper quoted Pinchas Idan, the chairman of the workers' committee at the Airports Authority, as saying, "We were forced to the austerity plan and reduction of the airport's workforce because there is not enough work for everyone, and the operation under the plan may take 6 months."
The Airports Authority's response to the workforce austerity plan at the airport was: "Despite the sharp decline in aviation activity in Israel as a result of the war, the Airports Authority had refrained from laying off employees but, in light of the current situation and in coordination with the workers' committee, it has been decided to put hundreds of workers on unpaid leave."
These austerity and downsizing measures at the airport's workforce come as negotiations continue between the Israeli government and various international airlines that suspended their operations in Israel since the "Al-Aqsa Flood" offensive launched by the Palestinian resistance against the occupation on October 7.
Thousands of Flights Cancelled
Since the war on Gaza, thousands of flights by foreign airlines to and from Israel have been cancelled. Most airlines have already announced that they will not resume their routes until mid-January 2024, with Ben Gurion Airport operating through Israeli airlines, including El Al, which currently operates on a very limited basis.
Israeli airlines have maintained partial operations at Ben Gurion Airport, following the Finance Committee of the Knesset's approval of a request by Israeli Ministry of Finance Accountant General Yehli Rotenberg to provide a $6 billion guarantee framework to cover war risk insurance for Israeli airlines, as reported by the Calcalist economic newspaper.
Alongside the partial activity of the Israeli airlines, the Airports Authority and the Israeli government are working to bring international airlines back to Israel as soon as possible, with ongoing negotiations regarding government guarantees to provide war risk insurance.
Extension of Flight Suspension
The Lufthansa Group, which also includes the Swiss and Austrian airlines, has announced its intention to partially resume flights to Israel on January 8, with more global companies expected to follow suit, provided the Israeli government offers guarantees and insurances against war risks, as reported by The Marker economic newspaper.
These three companies from the Lufthansa Group will return to operating about 20 weekly flights to Israel, roughly 30% of the normal schedule for these companies before the war on Gaza.
Conversely, the American airlines American Airlines and Delta have announced that due to the security situation in Israel, they will extend the cancellation of flights and will not return to operations in Israel until the end of March. They were joined by Air Europa from Spain, which announced the postponement of its return to Israel until early February.
The newspaper estimated that the anticipated return of the Lufthansa Group to partially operate flights to and from Israel is primarily due to political pressure exerted by the German government, which supports Israel in the war on Gaza.
War Routine
According to data from the Israeli Airports Authority, nearly 23,000 passengers passed through the airport daily during the "Lights Festival – Hanukkah," which took place in the first week of December. On Monday, nearly 22,000 passengers passed through the airport.
However, these numbers are low compared to a regular period; for comparison, in December of last year, an average of 62,000 passengers passed through Ben Gurion Airport daily. And during the war on Gaza, only the three main Israeli airlines—El Al, Israir, and Arkia—were operating in Israel, running flights to and from Ben Gurion Airport.
The newspaper attributed the slight increase in passenger numbers and flights to the Hanukkah holiday and preparations for Christmas and the New Year celebrations on December 31.
Furthermore, the newspaper stated, "Israel has already settled into a war routine, some reserve soldiers have been discharged, and there is a feeling among some Israelis that the war is managed and containable, making it possible to travel abroad to relieve the pressures of war."
