A forum of leading tech executives and investors is planning to launch a new seasonal airline named TechAir to operate round-trip flights from Tel Aviv to New York, as US airlines have stopped flying to and from the country in the past couple of months.
TechAir is being initiated by Israel’s high-tech headquarters, a forum of entrepreneurs and founders of startup companies, investors, and managers of venture capital funds, who rely on face-to-face meetings with investors and customers who are based outside of the country.
The lack of government action to provide solutions for the dire travel situation is causing business disruptions to entrepreneurs and executives, as Israel attracts most of its tech investments from abroad, with the US market representing the main market for expansion. About 80 percent of venture capital investments in local high-tech startups have been generated from foreign funds in recent years.
Citing the shortage of flights to the US, limited availability, and high airfares, TechAir said it plans to operate three weekly direct flights with leased planes and crews to bolster the route between Tel Aviv’s Ben Gurion Airport and New Jersey’s Newark Airport, starting in January through March.
Round-trip ticket prices with TechAir will run from $800 to $1,800 in economy class, including luggage, seating, and meals, and $4,500 to $5,500 in business class. Round-trip fares with Israel’s flagship carrier, the only airline currently offering direct routes to New York cost between around $1,300 and $2,400 in economy class, when booking at the end of January.
The plan is for a total of 36 direct weekly flights that depart at midnight from Israel and land at Newark Airport early in the morning on weekdays, with one flight departing over the weekend.
Passengers at Ben Gurion International Airport, near Tel Aviv, July 26, 2024. (Yossi Aloni/ Flash90)
The high-tech forum said it is in negotiations with several airlines for a wet lease agreement for the Airbus A300-330 aircraft, which has 264 economy seats and 16 business class seats, or the Dreamliner with around 300 economy seats and about 30 business class seats.
On Monday, the forum set up an online registration form for interested companies to sign up for a minimum ticket purchase of $10,000 to $20,000 during the three-month period, with the right to use or resell the tickets through travel agents. If ticket sales generate a profit, it will be shared among the companies that committed to advance purchases.
Since war broke out with the Hamas terror group following the October 7 onslaught on southern Israeli communities last year, foreign airlines have repeatedly canceled and resumed their flights to and from Israel. In recent months, US airlines completely stopped flying to Israel during heightened fighting between Israel and Hezbollah in southern Lebanon, and as tensions rise in the Middle East.
That has left Israel’s flagship carrier El Al as the only airline flying from Tel Aviv on direct routes to North America, canceling flights only when Ben Gurion Airport or Israeli airspace closes. The lack of competition has led to a severe shortage of seat availability, while driving up airfares by 100 percent, and in some periods by much more.
American Airlines extended the suspension of flights to Tel Aviv from March 2025 until September, while US carrier Delta Airlines canceled their routes to Israel until April 2025. United Airlines has suspended its flights to Tel Aviv for the foreseeable future, due to security concerns, and plans to resume them when it is safe for its customers and crew.
