Please note that the BA policies only relate to their own 125 tickets. If/when the flight on 26th October is cancelled I would personally not wait too long to discuss options with AA as they ticketed. Coincidentally, I am currently booked on the BA405 TLV - LHR on this date so am keeping an eye on this.

I say this as I had a Qatar ticketed RTW booking that included a BA flight to TLV in February this year. When that was cancelled by BA, it took some time to convince BA that they were responsible as the operating carrier. I did get rebooked onto El Al by BA eventually but it took them a while (a number of weeks) to acknowledge their responsibility to get me to TLV so I don't know how the AA/BA combination will work and who will take responsibility.

I'm not a huge expert but I believe both UK261 and the Israel Aviation Services Law apply here and they both put the onus on the Flight Operator to support the passenger. The Israel Law says a passenger is not entitled to benefits under the law "if he has received a Flight Ticket without payment or a Flight Ticket has been acquired at a special tariff which is not given directly or indirectly to the public, unless the ticket has been issued to him by virtue of his membership in a program for the giving of bonuses of a Flight Operator or Organizer.". I interpret this to mean that a miles ticket is covered.

Hope this helps

BONDY