Israeli Public Transport Operators Sue Ministry of Transport for Millions

Public transport operators in Israel have filed a massive lawsuit against the Ministry of Transport at the Jerusalem District Court. Around 15 companies, including Electra Afikim, Metropoline, Kavim, and Superbus, are protesting a unilateral change in the financial penalties and deductions mechanism applied against them, demanding the court cancel deductions made in recent years and return tens of millions of shekels.

According to data revealed by Calcalist, the lawsuit demands the return of 31.1 million NIS that were deducted from the companies, alongside 3.6 million NIS in interest. The dispute erupted after the ministry began fining operators 10,000 NIS for every reporting violation in 2024, instead of a standard fine of up to 1,000 NIS. In addition, the ministry stopped recognizing traffic congestion, accidents, and protests as exceptional events, imposing heavy fines for delays caused by these incidents.

In the statement of claim, the companies sharply attacked the ministry's policy, writing that operators bear massive contractual compensation amounts every month in silence despite most service level violations stemming from systemic industry problems beyond their control. The current legal proceeding tests the complex relationship between the state and private public transport operators in Israel.