Seems pretty straightforward that they are eligible for full compensation under israeli law
February 16, 2023
Hello XXX:
On behalf of American Airlines, thank you for contacting Customer Relations. We appreciate the opportunity to address your claim for compensation based on the Aviation Services Law.
We regret your flight from Tel Aviv on February 1, 2023 was diverted. Please accept our apology for the inconvenience and impact on your travel plans this irregularity caused. It is never our intent to create difficulties for you, or any of our passengers, and appreciate that this disruption was a frustrating experience.
As you have correctly identified, the Aviation Services Law (Compensation and Assistance for Flight Cancellation or Change of Conditions), 5772 -2012 has established common rules on compensation and assistance to passengers in the event of cancellations or long delays of flights. Under this regulation, in the event of a flight cancellation or delay, passengers are entitled to established levels of compensation.
However, this regulation does not apply when a flight is delayed for less than 8 hours departing its origin city or a flight is cancelled or delayed due to something out of our control, like weather or Air Traffic Control issues. Since flight AA53 was diverted and delayed due to a medical situation, American Airlines is not required to provide the compensation you have referred to.
XXX, we value your continued loyalty and look forward to rebuilding your confidence in our service. We hope you'll give us the opportunity to provide you with a more positive experience in the future.
Sincerely,
Jackie Coples
Customer Relations
American Airlines