It's not quite clear cut. To put it breifly:
Israeli Law states (to paraphrase multiple sections) courts can award up to NIS 10,000 for assistance not being provided such as lack of hotels or food or the like. AA admired they didn't provide those. There are many separate instances where they would be liable for up to NIS 10,000.
So by default if we go to court the judge will award something in my favour as it's clear that they didn't follow the law. How much to be awarded depends on the court.
The issue is that even though there is a 100% certainty they will lose in court they will not negotiate a settlement or do anything else unless I take them to court which I am more than happy to do, just need a lawyer.
DOT has no bearing and will not act in a case involving foreign law.