Cyprus-based TUS Airways has been banned from flying to and from neighbouring Lebanon because Israeli company Knafaim Holdings is one of its shareholders.
The proscription includes denying access to Lebanese airspace to TUS and is based on Lebanon's 1955 law aimed at boycotting Israel, which has bombed and invaded its northern neighbour several times over the following decades.
Citizens of either of the two countries, which are technically at war, are not permitted to visit the other nation. Third-country passport holders can be denied entry into one if a passport contains evidence of visiting the other.
TUS made headlines in late 2022 after being given the go-ahead to fly between Israel and host Qatar during the football World Cup.
Knaifim is said to be the biggest aviation holding company in Israel. As well as its 49.9% stake in TUS, it holds 50% of QAS, which provides ground handling services at Tel Aviv's Ben-Gurion International Airport.
The company also part-operates five lounges at Ben-Gurion International Airport, which is named after Israeli independence hero and former prime minister David Ben-Gurion.