Whether Kuwait recognises Israel or not is a moot point IMHO.
However, if Kuwait Air wishes to fly internationally then the airline should be expected to abide by internationally recognised standards.
The UN recognises Israel as a state, that's good enough for me.
Airlines would not be allowed to fly overseas if they failed to adhere to safety standards would they ?
I can see why the court could not act, however the airports and national governments can, and should.
I get the feeling that if PAX plummet this absurd and rather pathetic rule would sink into historical oblivion where it belongs.
Shame on Kuwait Air quite frankly.