The agreement follows El Al’s first flight from Tel Aviv to Abu Dhabi on 31 August, which was also the first direct, non-cargo flight between Israel and the UAE.
It gives scope for the two carriers to introduce joint codeshare services between Abu Dhabi and Tel Aviv, as well as on Etihad and El Al’s global flight networks.
Other provisions for greater commercial cooperation cover cargo, engineering, loyalty, destination management and sharing of pilot and cabin crew training facilities.
The MOU was signed by Etihad group chief executive Tony Douglas and El Al chief executive Gonen Usishkin.
"This MOU is the foundation of what we envision will be a strong ongoing relationship between Abu Dhabi and Tel Aviv," said Douglas.
"We look forward to examining ways in which the two flag carriers can work more closely together to improve business operations and enhance the experience for our guests."
Usishkin added: “Following the normalisation of diplomatic relations between Israel and the UAE, we have been provided a great opportunity to examine the possibility of cooperation with Etihad Airways. This MOU is only the start."
Etihad’s Guest and El Al’s Matmid loyalty programmes will now explore reciprocal opportunities for its members, as well as other benefits, while the two carriers’ destination management teams will look at ways to encourage reciprocal inbound tourism to Abu Dhabi and Tel Aviv.
Earlier this week, Etihad announced plans to launch daily services between Abu Dhabi and Tel Aviv starting 28 March 2021.
