The scene at JFK Airport’s Terminal Four last Sunday was bustling as travelers prepared for the flight to Tel Aviv. Families with young children, Orthodox Jews dressed in traditional attire, and young Israeli backpackers jostled for space near the boarding gate. Among them were unexpected participants: tech professionals sporting vests from companies like Google and carrying bags from various international tech firms.
This flight, Arkia 992, marked a significant milestone as it was the first service by a new Israeli airline to launch in the U.S. in many years. Arkia’s journey was noteworthy, not just for its successful takeoff but as a response to a growing crisis following months of conflict with Hamas that severely disrupted air travel to Israel.
In the wake of recent hostilities, almost every major airline around the world, including American giants like United, Delta, and American Airlines, ceased operations to Tel Aviv. This halt occurred without any official safety advisories from the Federal Aviation Administration to guide their decisions. Prior to the October 7 attack by Hamas, these airlines collectively operated nearly 60 weekly flights from the U.S. to Israel, as noted by travel expert Mikey Levy, who runs a travel company in Tel Aviv.
Currently, only the national carrier, El Al, serves the U.S.-Israel route, which has understandably driven ticket prices through the roof and drastically limited the number of available seats. Mikey Levy highlighted that tens of thousands of seats are missing from one of the most critical markets for Israeli technology firms. This state of affairs transcends just tourism; the impacts are felt deeply across the economy and are rapidly becoming a pivotal political issue.
In response to these challenges, Bronx Congressman Ritchie Torres accused U.S. airlines of effectively “boycotting” Israel, which has left travelers with limited options. Meanwhile, Texas Senator Ted Cruz has called for American carriers to resume flights to Israel, emphasizing the need for a return to normalcy in air travel.
Former President Trump has also voiced his concerns, stating his intention to push U.S. airlines to reinstate their routes to Israel. Analysts like Eyal Hulata, who previously advised Israeli prime ministers, expressed that the cessation of flights plays into the hands of adversaries aiming to isolate Israel from the global community.
Amidst the flight reductions, Israel’s economic landscape is suffering too. Last year, the economy shrank by 4.1%, a stark contrast to the robust growth of 6.4% the year prior. This downturn has been exacerbated by a sharp decline in tourism, as American visitors to Israel have dwindled to almost nothing over the past year and a half. Between 2023 and 2024, arrivals from the U.S. fell by nearly two-thirds, causing a dramatic drop in global tourism figures.
The economic effects are striking, with total exports down nearly 10%, significantly affecting the high-tech sector that accounts for a large part of Israel’s economy. Nicole Adler, a professor at Hebrew University, noted the dependence on global market access, emphasizing that the high costs and scarcity of flights hamper competition for Israeli tech companies.
Faced with this dire situation, leaders in the tech industry, including Eynat Guez, CEO of a fintech company, recognized the urgent need for change. With flight availability plummeting and ticket prices surging, Guez and a group of tech executives began exploring the possibility of establishing a new airline to meet the demands of the market. They understood that their economic survival depended on maintaining connections to the international market.
As discussions progressed, the group sought to validate their idea by gauging interest from potential passengers. The response was overwhelmingly positive, indicating a clear demand among tech companies for reliable and affordable air travel to the U.S.
Soon, Arkia Airlines revived its route from New York to Tel Aviv, aided by the collaborative effort of the tech community, which demonstrated the feasibility of such a venture. The focus was on ensuring that companies would have flexible travel options, allowing for easy adjustments to itineraries — a crucial factor for businesses.
With Delta and United also recently announcing plans to resume flights this spring, the situation is gradually improving, yet the lesson is clear: Israel’s tech sector cannot depend solely on foreign carriers to sustain its economic growth. They learned the hard way that developing their own aviation solutions is essential for keeping their businesses thriving.
Ultimately, the call for increased domestic airline operations is louder than ever. The resilience showcased by Israeli tech leaders reflects a growing need for self-reliance, emphasizing that when it comes to crucial services like air travel, there’s no substitute for homegrown solutions.
