Equal Opportunity Discrimination

An American-residing Israeli woman (with an Israeli passport) is suing Kuwait Airlines after it refused to board her on a flight from New York to London. Kuwaiti law prohibits allowing Israeli citizens to travel on the airline.

The airline's defense rang odd to me:

The airline’s attorney John Maggio told the newspaper that the suit has no merit because the policy is based on citizenship, not religion. He said that a Muslim with an Israeli passport also would not be allowed on the plane.

I mean, okay, but then how is this not just an example of national origin discrimination instead? Am I just missing something obvious?