Interesting case here -
http://www.globes.co.il/news/article...did=1001207379
The Israeli small claims court awarded damages of 26000NIS to a family that bought tickets with Air France from Israel to the US, which also included some internal US flights on Alaska airlines. The Alaska airlines flight for the beginning of their return leg to Israel was delayed which caused them to miss their Air France flights. Air France rebooked them on British Airways and they reached Israel with a delay of 11 Hours. The family sued Air france for compensation under Israel's laws, but Air France said that since the delay was caused by another carrier that Air France should not be liable, even though the tickets were isseud and purchased through Air France.
The small claims court judge ruled that the family was eligible for compensation under Israeli law of 3070NIS per passenger for "cancellation" of a flight over 4500km, and 2000NIS per passenger punitive damages for refusing the pay out the compensation in the first place.
While it sounds nice that a family won so much compensation here, this sets a dangerous precedent that could cause flight tickets to Israel to increase in price in the long run or cause the airlines to stop issuing connecting tickets with other airlines when Israel is the origin or destination.
I'm curious to know if the final destination had been Paris and the family was 11 hours late due to the delayed Alaska air flight would they have been eligible under the EU rule 261?