El Al Demands Removal of Max's SkyMax Ad Over Alleged Misleading Claims
The competition in Israel's airline loyalty card market intensifies as El Al's frequent flyer program, "The Frequent Traveler," requested the Second Authority for Television and Radio to immediately remove a new advertisement by Max promoting its SkyMax card. The ad, launched on July 20, criticizes El Al's FlyCard and Cal's FlyAll cards, claiming FlyCard is limited in seat availability, destinations, and airline options. This dispute follows a months-long battle after Isracard took over the management license of El Al's frequent flyer program and the FlyCard issuance from Cal, which serves about 550,000 customers.
El Al previously won a partial victory in mid-July when the Second Authority ordered Cal to remove certain claims from its FlyAll campaign, including faster access to free flights and double cashback compared to FlyCard. Now, El Al challenges Max's ad, arguing it contains false and misleading statements. El Al insists that FlyCard members can redeem points on dozens of foreign airlines through code-share agreements and that points can be used for any flight, date, class, or destination without restrictions. However, El Al's own terms state it can limit seat availability, dates, and destinations at its discretion, and point-to-cash conversion rates may vary.
El Al also notes that only about 30% of flights booked with points are fully redeemed with points, which it views positively as broad usage, though some interpret it as evidence that 70% of customers settle for partial redemptions. The timing of El Al's complaint, about ten days after Max's campaign launch, is notable given the typical two-week lifespan of TV campaigns. El Al claims it first asked Max directly to remove the ad. The dispute highlights the fierce competition following Isracard's takeover and the aggressive marketing tactics employed.
Max responded by welcoming competition and defended SkyMax as a superior card offering cashback on all purchases toward flights and about 10% cashback for future vacations. Max acknowledged FlyCard's strengths but maintained it is limited in airline options and offers cashback in points rather than cash. The ongoing conflict underscores the high stakes in Israel's airline loyalty card sector and the regulatory scrutiny over advertising claims.
