Originally Posted by
CO FF
The AA/LY codeshare was dropped because of the dispute between the Israeli civil aviation authority & the US FAA over procedures @ TLV. Even before that, you still had to buy the AA flt # (rather than the LY flt #) to get AA EQM/EQP, and there was a significant price hit on that.
The codeshare has not been dropped. It is suspended because the FAA does not allow U.S. airline codes on Category II airlines at all.
El Al continues to place the LY* code on AA* flights. AA will be allowed to place its code on LY* flights when Israel returns to Category I.