Berlin: A German court ruled on Thursday that Kuwait Airways had the right to refuse to carry an Israeli passenger due to his nationality, Al Qabas newspaper reported.
The Frankfurt state court said the airline was merely respecting the laws of Kuwait, a country that does not recognise the state of Israel, and said it was not up to a German court to rule on Kuwaiti law.
Germany's anti-discrimination law applies only in cases of discrimination on the basis of race, ethnic background or religion, not citizenship, it said.
The Kuwaiti airline decided to cancel the flight after realising that one of the passengers was an Israeli national.
It based its decision on a law which dates back to 1964, prohibiting any agreements with Israel.
The German Court has also turned down a case which was lodged, demanding compensation.