For all its condemnation of alleged Middle East subsidies, American Airlines certainly loves them…when it is the beneficiary of them.
Last week, I wrote about AA’s new service between Dallas and Tel Aviv, set to commence in September of 2020. The new service will operate three times weekly and utilize a Boeing 787-9, opening up a new line between Israel and the United States.
But why Dallas? And why announce the route over one year early? As Dan’s Deals reports, there is a subsidy involved. Not just any subsidy, but the largest subsidy for a new airline route in Israel’s history:
The world’s largest airline, American Airlines , will receive a €750,000 grant from the Ministry of Tourism for the opening of a new line between Dallas and Tel Aviv . The money will be transferred to the company at the end of the first year of operation.
At three flights per week, that translates to about $3,000 per flight. I’m not sure the cost of one business class was enough to push AA over the edge, but it certainly did not hurt.
Dallas is indeed an interesting choice for a new route. The Dallas – Fort Worth area has a limited Jewish population, so it is not that. It is also not a huge trade route. Could it be a route geared primarily toward Evangelical tourists? Time will tell.
Gary Leff calls it the “subsidies should be for me, but not for thee” argument and it is tough to argue otherwise here. We can debate the scale and intent of such subsidies, but AA has shown us again that it does not consider all government subsidies bad…