American Airlines has snubbed a proposed codeshare deal with El Al and decided to launch its own direct services to Israel.
The decision to seek clearance to begin flights from New York to Tel Aviv in September surprised El Al, which has been in lengthy negotiations with the US airline over a codeshare agreement. "There was no sign that they wanted to fly to Israel. We will have to decide what to do now," said a senior El Al source.
Talks between the two have been going on for the past five years, and recently there were signs that they would result in an agreement to co-operate in New York and Chicago.
According to the El Al source, American's decision to go it alone will force the termination of El Al's Chicago services, as "continuation can only be justified with an American codeshare. Now we will have to re-assess it."
Sources in Israel say that American's rethink follows an updated assessment showing that the route could generate mainly high yield traffic. Continental has also had a good response to its daily New York Newark to Tel Aviv flights and will add a second daily rotation next month.
Source: Flight International
