Yes this TLV-BKK flight on LY is an oddity - it certainly is *not* excluded from the Star Alliance rules and so is legal. In fact when this question came up a few years ago I asked a mate of mine who worked the Star Alliance desk at a then * member (take one guess ) and he said it was legal and it would be ticketed as it was not expressly denied under the flight number exceptions.

Interestingly I have done this kind of thing myself before. I flew a NZ coded SQ flight back in 1998 or so before SQ joined * (SIN-AKL) - the flight number was permitted even though SQ wasn't part of the Star Alliance at that time. I also got NZ 100% credit for the flight rather than SQ's then 70% for Y travel, all under a Star Alliance RTW ticket.

I think Goodo's grandmother will have to fly back to VIE or FRA to connect back home - specially if she wants to sit in C.

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RichardMEL, UA 1K
A Star Alliance Member.