El Al Israel Airlines (LY, Tel Aviv Ben Gurion) has withdrawn a court case against the Israeli Government for allowing Air India (AI, Delhi International) to operate direct flights between Mumbai International and Tel Aviv Ben Gurion using Saudi airspace.

The Israeli carrier had filed the petition in the Israeli High Court in March citing the government, the Transportation Ministry and the Israeli Civil Aviation Authority as respondents. It had sought to block Air India's permit as well as any future permits issued to foreign carriers which would allow them to use routings that El Al is barred from using. It argued that Air India's access to the Israeli market using Saudi airspace constituted an unfair competitive advantage and violated the state’s commitment to Israel’s national carrier.

In a follow-up statement to the Tel Aviv bourse on Wednesday, July 25, El Al said it had withdrawn the case following a preliminary court hearing on July 18.

According to the Calcalist business daily, at the hearing, the court had advised the carrier against further litigation and gave it one week to make a decision and respond.