Palestine Airways Airline Company in Palestine was an airline founded by Pinhas Rutenberg in British Palestine, In 1937 the airline was taken over by British Government’s Air Ministry, with the intention of it eventually being transferred back into private hands.
Between July 1937 and August 1940, it operated under the aegis of the British corporation Imperial Airways. Throughout these years, Palestine Airways flew thousands of passengers, its best year being 1938 with 6400 passengers.
The airline was registered as a private aviation company on 18 December 1934, with assistance from Imperial Airways whose crew piloted and serviced the aircraft and handled passenger check-in.
Based in Haifa, on 11 August 1937 it commenced commercial flights 3 times a week to Lydda. In 1938 Palestinian Airways moved its main base to the newly built Tel Aviv Airport (in 1940 renamed Sde Dov) and commenced operations on the Tel Aviv to Haifa route, flying twice a day in their de Havilland Rapide. From September 1938, the route was extended from Haifa to Beirut.