One of the many reasons I avoid El Al - outside of Tel Aviv, your status is worthless.
According to a few other threads here, unless you're TPL your LY status is worthless @ TLV too...
LY is clueless when it comes to business, unfortunately. As you said, to both its customers and business partners. I can only imagine what their discussion with Boeing was on the 787.... "more discount, we may be buying below cost, but we need more discount, otherwise we just buy 20 year old 767s!"