Palestine Airways (also: Palestine Air Transport) was an airline founded by Zionist Pinhas Rutenberg, in British Mandatory Palestine in conjunction with the Histadrut and the Jewish Agency. 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. It operated from July 1937 until August 1940, under the aegis of the British corporation Imperial Airways.
Source: Wikipedia
http://www.mfa.gov.il/MFA/History/Modern%20History/Centenary%20of%20Zion...
The Land of Israel took part in the worldwide spread of commercial aviation. To encourage use of the new air service, residents of the Land of Israel were urged to favor Jewish aircraft over foreign carriers. Young people began studying for aviation careers. (1930s