No airline has any reason to honor tickets for which they will never receive payment, and every reason to "waive advance purchase" restrictions to people who have Tower Air tix, because these seats would have been potentially unsold, and the goodwill earned is substantial, as these people will now need to find a new carrier to TLV. Although there are only a few US carriers flying there, for those living anywhere west (and generally having to change planes, etc) we could fly any of a number of european carriers with 1 change of planes in europe. And we could receive our choice of whatever alliance miles. So I think CO is playing it smart, and other carriers may (silently) be doing the same.