An intensifying battle over Israel’s 550,000 frequent-flyer credit card customers has erupted after the high-profile move of El Al’s loyalty club from Cal to Isracard. The contest has spilled into social media, comparison sites, marketing campaigns and even formal accusations between the companies, with customers trying to understand which card offers the better deal.
In recent days, a site called “HaKarnet” appeared online, advertising itself as an AI platform that compares all Israeli credit cards and calculates their value. In multiple test scenarios, it repeatedly recommended Cal’s new FlyAll over Isracard’s Fly Card. But strategist Vlad Savidler said his own simulations using Claude, ChatGPT and Gemini, plus about 150 virtual “mystery shopper” chats, produced the opposite result, with Fly Card recommended in 95% of cases for existing cardholders and 68% for new customers. He said FlyAll looked more attractive on image, perks, cost and signup bonus, but lost on trust because it is less familiar.
The dispute has also created consumer confusion. In a Facebook group for El Al frequent flyers, customers complained about unclear details, while calls from Bank Leumi? No, Discount Bank, which owns Cal, reportedly urged clients to switch to FlyAll. The key difference is that FlyAll still allows points accumulation on direct El Al ticket purchases, but unlike Fly Card it does not earn points or diamonds on everyday spending, and it does not include bonus tickets, Tuesday promotions or status upgrades. Cal’s model is cashback-based and can be used to buy tickets through Issta for any airline. Cal says its staff are trained to explain that switching means ending the old ongoing points accrual, while points already earned are protected for 18 months, unless customers move to Fly Card and extend the clock through purchases.
Another flashpoint involved signup bonuses and card benefits. Some customers were angry to receive 2,500 Fly Card signup points instead of 5,000, but the standard terms did not change, and existing cardholders are not treated as new customers. Others complained that the World Elite branding on new Fly Card cards suggested premium benefits such as free travel insurance, only to learn the card is excluded. FlyAll’s signup bonus, which had been $250 just days earlier, has since been cut twice and now stands at $75. Some customers also objected to not receiving a fee waiver, but Isracard said that depends only on the customer’s official El Al status.
El Al has escalated the fight with a legal warning to Cal CEO Yifit Greiani, accusing the company of consumer fraud, breaching the agreement and violating the law. El Al says Cal launched the new campaign in violation of the deal and is engaging in misleading comparisons, false advertising and exploiting El Al’s accumulated reputation. Cal rejected the claims, saying FlyAll offers a new, simple and transparent value proposition and that El Al is trying to intimidate rivals instead of competing on merit. Bank Discount said it is simply informing customers about the available options so they can choose the best offer.
