Flag carrier El Al Israel Airlines said on Thursday it would not be able to maintain a full flight schedule to Dubai from Sunday due to disagreements over security arrangements in Dubai.
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Tens of thousands of Israelis who had already purchased tickets will not be able to fly, it said.
El Al and two other Israeli airlines called on the Israeli government to intervene.
Nonstop flights from Tel Aviv to Dubai on El Al and smaller rivals Israir and Arkia were among the fruits of a landmark 2020 deal establishing ties between Israel and the UAE. Hundreds of thousands of Israelis have visited the UAE commercial hub since.