Gov’t mulls subsidizing Israel – Argentina flights

Israel’s Ministry of Finance will invite airlines to participate in a tender to establish a direct route between Israel and Argentina – a relatively unusual move in the aviation industry, where launching new routes is usually initiated by carriers based on potential profit. This time, it is the government leading the initiative, to examine whether there is economic justification for government support that would allow operation of the route.

In the first stage, the Ministry of Finance has issued an RFI (Request for Information) to understand whether there is any economic feasibility for operating a direct route between Tel Aviv and Buenos Aires. If justification is found, a decision will be made on how to formulate an official tender or a government subsidy program that will assist the carrier that chooses to operate the route. According to the Ministry of Finance, the move is being examined due to the political and economic importance of strengthening ties between the countries.

Government intervention in the aviation market is not routine, but it is also not unprecedented. Similar steps have been taken in Israel in the past, for example in supporting the resumption of flights to Eilat, with the government sharing in the cost based on the number of passengers, as well as in cases of political interest, such as maintaining the route between Tel Aviv and Cairo. This is a familiar practice worldwide: countries operate subsidy mechanisms for routes that are perceived as essential from a national or diplomatic perspective but are not commercially profitable for airlines.

A golden age in relations

In June, Minister of Finance Bezalel Smotrich and Minister of Foreign Affairs Gideon Saar announced that direct flights between Israel and Argentina would be promoted. Argentine President Javier Milei, an ardent supporter of Israel who visited the country a few months ago, also announced on his Instagram account the establishment of direct flights between Buenos Aires and Tel Aviv, which would begin operating “very soon.” The move comes as a direct follow-up to a proposal submitted to the government at the end of May, in which the Foreign and Finance Ministries declared their intention to establish an operational mechanism that would ensure the success of the route, while providing incentives to airlines, which would operate two weekly flights in each direction.

Matan Lev-Ari, former Israeli representative on the board of directors of the Inter-American Development Bank, says “Today we are in a golden period in our relations with the Argentine government. And Argentina has something to gain from the relationship: the business sector that contributes the most to the Argentine economy is the agricultural sector, to which Israel can contribute a lot, and the same applies to everything related to the shortage of drinking water.”

Direct flights would also have many advantages in terms of tourism. “Latin America is a religious region that has an affinity for Israel and a desire to see its holy sites. The existence of direct flights naturally creates connections – when it is easier to get there, we do it,” says Lev-Ari.

There are also limitations

In an interview with Argentinian radio station Radio Mitre, Argentine Ambassador to Israel Axel Wahnish said that the direct flights will be operated by El Al, explaining that this is “because significant government and economic assistance is required at the beginning.” El Al is indeed examining the possibility of operating the route in question, although a final decision has not yet been made, and if it is accepted, it will take about a year to inaugurate the route.

There have previously been failed attempts to operate direct flights between Israel and South America. An El Al route between Tel Aviv and Sao Paulo in Brazil, which opened in 2008 was closed after only two years due to rising fuel prices making the route unprofitable. Industry sources say conditions are completely different today, and that there has been an increase in demand for Argentine destinations in the past two years – a trend opposite to that recorded in Brazil, for example, due, among other things, to geopolitical changes that affect passenger traffic.

However, it is one of the longest and most complex routes to operate, requiring a flight of more than15 hours. While Sao Paulo is a natural “gateway” to South America, Buenos Aires is about two hours’ flight south and therefore does not serve as a convenient transit point to other destinations on the continent.

The flight routes themselves also pose a difficulty. The current possible route passes over the Mediterranean Sea, through Morocco, and continues south along the Atlantic coast of Africa – a long and expensive route to operate, which is “at the limit” of the capabilities of long-haul passenger aircraft and may make operating the flight unviable.

Shorter routes through Libya or Sudan are not possible. There is a flight ban over Libya, and a war is raging in Sudan that puts commercial flights at risk. Alongside El Al, other Israeli companies such as Arkia and Israir may also participate in the move by leasing suitable aircraft, similar to the model in which Arkia operates flights to the US.

Since, according to bilateral agreements, the only companies that can operate such a route are Israeli or Argentinian, another company on the agenda is the Argentine flag carrier Aerolíneas Argentinas, which has the appropriate aircraft to connect the two countries on a direct flight of 15 hours. The carrier also has a codeshare agreement with El Al, which may facilitate future cooperation between the two airlines.

Currently a 21-hour flight

“There are two prominent groups of tourists who visit Argentina. The first are backpackers on a post-military trip, who choose Argentina as the departure country for a longer trip to Peru, Brazil, and so on. The second group belongs to the organized tour sector, and there we see people between the ages of fifty and eighty,” notes Ofakim Travel CEO Revital Ben-Natan. “Both groups currently fly via connection flights in Europe. A direct flight would significantly reduce travel time and significantly increase the number of visitors to Argentina.”

Since there are no direct flights between Israel and Argentina, the journey there involves intermediate stops, sometimes long and cumbersome. The cheapest flight we found is with Air France, at a cost of $1,070 through the Last Minute website, with a long stopover in Paris. The total flight duration is 33 hours, with a 14-hour wait on the way and 17 hours on the return, a period of time that allows for a stopover overnight in France, which some tourists actually see as a tourist advantage in itself.

The cheapest, fastest and most convenient flight we found is with Air Europa, one of the popular companies for connecting flights to South America. Through the Book a Flight website, the price of a round-trip ticket is $1,160 (without luggage – an additional $160 with luggage). The stopover in Madrid is relatively short, only three and a half hours, both on the way and on the return, And the flight takes 21 hours to Argentina and 20 hours on the way back to Israel.

Those willing to extend the journey can reduce costs even further. For example, an Air France flight with two connections within France costs less than $1,000 but involves an extremely long journey and transfers between airports.

Published by Globes, Israel business news – en.globes.co.il – on October 21, 2025.

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