The struggle between Israel’s frequently flyer programs is heating up. In the past few days the ICC CAL credit card company has launched its new FlyAll brand after it lost the El Al’s Fly Card frequently flyers club to credit card rival Isracard (TASE: ISCD), after more than a decade of cooperation. But as things stand, the saga between the two companies is only just beginning.
“Globes” has learned that following ICC CAL’s new campaign for FlyAll, El Al is accusing its former partner of “consumer fraud.” In a warning letter sent to ICC CAL CEO Yafit Gheriani, El Al claims that the credit card company is violating the provisions of the agreement between the parties as well as the the law. Among other things, claims of “false, misleading and offensive statements” are mentioned.
The El Al frequent flyer club claims that, contrary to the agreements according to which “The parties undertook in the amendment letter to continue acting to uphold the agreement and to continue operating the existing cards,” ICC CAL has launched a campaign for the new FlyAll card, which constitutes a breach of the agreement.
El Al also claims that this is “misleading the public, improper comparison between the various club cards, false advertising and exploitation of the great reputation that has been illegally taken on.”
The claim is that FlyAll is too similar to Fly Card
One of the claims concerns the apparent similarity between the club names: “The similarity cannot be ignored and creates in the eyes of the consumer a clear direct connection between the brands, especially when it applies to two entities that are identified as ‘partners’ with respect to the product,” El Al claims.
Beyond the new name ICC CAL has chosen, El Al claims that the value offered in the new FlyAll campaign also hurts them: “El Al’s marketing move, which offers customers to ‘upgrade’ their Fly Card with the click of a button and without the need to replace it has led the consumer to a false conclusion, explaining that this is an official update or a new version of the Fly Card on behalf of El Al, and that this is supposedly a marketing effort on behalf of the club.”
El Al is demanding that ICC CAL cease using the new brand name it has chosen, and in particular the word “Fly.” In addition, El Al is demanding that the campaign be stopped within 48 hours, otherwise it threatens to take legal action again.
ICC CAL said: “FlyAll offers Israeli consumers a new, simple and transparent value proposition – a model in which each point is worth a shekel and a wide range of redemption options, without complex mechanisms and without unnecessary restrictions. El Al’s warning letter is a direct continuation of an attempt to create fear and deterrence instead of dealing with the competition through a better value proposition for consumers. Israeli consumers are smart consumers. They know how to compare, check and make decisions for themselves, and ultimately they will choose the best value proposition for them.”
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Isracard hijacks El Als Fly Card from ICC CAL
El Al Frequent Flyer Club CEO Moshe Morgenstern says, “It seems CAL’s management, which is under pressure following the business failure that led to the loss of the Fly Card Club, has chosen to respond in an inappropriate way: misleading customers, riding on a brand that is not its own and making false representations. CAL’s offer is not an ‘upgrade’ but an attempt to get customers to give up their card and switch to an inferior CAL product, which does not provide the benefits they will accrue with El Al. This is not competition – this is consumer fraud.”
The background to the current struggle
The saga began a little over two months ago, with an unexpected move in which Isracard, under the new ownership of Delek Group and new CEO Itamar Furman, announced that the frequent flyer club was being transferred to it.
Fly Card is the largest customer loyalty club in Israel, with about 3.6 million members, of whom over 500,000 hold a credit card on its behalf. The announcement was a major upheaval in Israel’s credit card market and has led to one of the fiercest battles known in recent years.
Along with the financial repercussions and the trading of accusations between the companies, many consumer questions also arose – such as how the transition will be carried out and what will happen to points already accumulated. As first revealed in Globes, the first to threaten legal action was CAL, which initially claimed a “hijacking” and warned it would take legal action.
Later, the parties sought mediation through retired judge Hila Gerstel, which was granted the force of an arbitration award by the president of the court. The Tel Aviv District Court retired judge Eitan Orenstein. Among other things, the parties argued over the question of whether Isracard should start issuing Fly Cards now, or whether it should wait until the end of the year, when the agreement between the frequent flyer club and CAL will expire. As part of the compromise reached, it was set that Isracard would pay CAL compensation of NIS 75 million and would be able to issue new cards now. However, CAL’s new FlyAll campaign has reshuffled the deck and may result in the parties unexpectedly resuming their legal battle.
Published by Globes, Israel business news – en.globes.co.il – on June 9, 2026.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.
