Blue Bird Airways Faces New Lawsuit After Stranding Passengers in Greece
Blue Bird Airways faces a new 500,000-shekel lawsuit after stranding dozens of Israeli passengers in Heraklion for 12 hours. The airline is battling mounting legal actions, Supreme Court rulings, and regulatory hearings over massive flight delays.
Blue Bird Airways and its Israeli partner, Holiday Travel, are facing a new half-million-shekel lawsuit filed by dozens of Israeli passengers who were left stranded for 12 hours at the Heraklion terminal in Greece without food, water, or company representation.
The incident is part of an escalating series of operational failures, massive delays, and unprecedented legal battles. Passengers recount arriving at the Greek airport only to discover rolling flight delays and an endless overnight wait at the gate.
International Legal Escalation
The legal friction peaked in August 2026, when 28 Israeli passengers who sued over a canceled Budapest flight obtained a temporary international seizure order from a Dutch court on the airline's fuel and navigation equipment. The lien was lifted only after Holiday Travel deposited 500,000 shekels into an escrow account. Weeks later, passengers on an Israel-bound flight were trapped inside a closed aircraft for over an hour before crew finally opened the doors following protests.
Regulatory Pressure and Supreme Court Rulings
In June 2026, the Supreme Court delivered a procedural blow to the companies. Justice Gila Kanfi-Steinitz rejected a motion to consolidate 29 separate small claims filed nationwide regarding a canceled flight, ruling that dispersed litigation protects consumers from traveling far from home. Meanwhile, following widespread summer disruptions, the airline's management was summoned to an urgent hearing at Ben Gurion Airport by the Israel Airports Authority and the Ministry of Transportation.
Small claims courts across the country continue to rule against Blue Bird, strictly enforcing the Aviation Services Law. Passengers facing canceled or severely delayed flights are advised to submit formal compensation claims via the airline's website or file independent small claims suits to secure statutory compensation, legal costs, and damages.
