Israel's national carrier is suing the government for allowing Air India to fly over Saudi airspace on its New Delhi-Tel Aviv flights.
El Al said Wednesday Israel's government had pledged to "encourage fair and healthy competition" between Israeli airlines and foreign competitors.
Saudi Arabia and Israel have no diplomatic relations. The kingdom's decision to allow the Indian carrier to fly through its airspace en route to Tel Aviv reflects an apparent behind-the-scenes warming of ties between the two countries.
But El Al says it has been harmed, since it currently has the only flights connecting Mumbai and Tel Aviv. Air India's new route significantly shortens travel time and airfare costs.
El Al requests a halt in Air India flights until Israeli airlines are also allowed to fly over Saudi Arabia.