A group of prominent executives and investors in the tech industry is planning to establish a new seasonal airline, TechAir, to offer round-trip flights between Tel Aviv and New York. This move comes after US airlines ceased their operations to and from Israel in the past few months.

TechAir is being launched by Israel’s high-tech sector, which consists of a group of entrepreneurs, startup founders, investors, and venture capital fund managers who frequently require in-person meetings with clients and investors from abroad.

The absence of government intervention to address the critical travel situation is disrupting business operations, particularly for entrepreneurs and executives. Israel relies heavily on foreign investments, especially from the US, which is a key market for business expansion. In recent years, approximately 80% of venture capital funding for Israeli startups has come from international investors.

Due to a shortage of flights to the US, limited seat availability, and soaring ticket prices, TechAir plans to introduce three weekly direct flights using leased aircraft and crews. These flights will operate between Ben Gurion Airport in Tel Aviv and Newark Airport in New Jersey, from January to March.

The cost of a round-trip ticket with TechAir will range from $800 to $1,800 in economy class, including baggage, seating, and meals, while business class tickets will be priced between $4,500 and $5,500. In comparison, round-trip fares with Israel’s national airline, the only one currently offering direct flights to New York, range from approximately $1,300 to $2,400 in economy class if booked at the end of January.

The plan includes a total of 36 direct weekly flights, with departures from Israel at midnight and arrivals at Newark Airport early in the morning on weekdays, plus one weekend flight.

The tech forum mentioned that it is currently negotiating with several airlines for a wet lease agreement to acquire either an Airbus A300-330 aircraft, which seats 264 economy passengers and 16 in business class, or a Dreamliner with around 300 economy seats and about 30 business class seats.

On Monday, the forum launched an online registration platform for interested companies to commit to a minimum ticket purchase of $10,000 to $20,000 over the three-month period. These tickets may be used or resold through travel agents, and any profit from ticket sales will be shared among the companies that made the initial purchase commitments.

Since the war broke out with Hamas following the October 7 attack on southern Israel, foreign airlines have consistently canceled and reinstated their flights to and from the country. Recently, US carriers ceased all flights to Israel amid escalated fighting with Hezbollah in southern Lebanon and rising tensions in the Middle East.

As a result, El Al, Israel’s national airline, remains the only airline offering direct flights from Tel Aviv to North America. It has only canceled flights when Ben Gurion Airport or Israeli airspace has been closed. The lack of competition has led to a significant shortage of available seats and driven airfares up by as much as 100%, with some periods seeing even higher increases.

American Airlines extended its suspension of flights to Tel Aviv through March 2025, with plans to resume in September. Meanwhile, Delta Airlines has canceled its flights to Israel until April 2025, and United Airlines has suspended its flights indefinitely due to security concerns. The airline intends to resume service once it is deemed safe for its passengers and crew.

{Matzav.com}