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First IB TLV-MAD-JFK + Upgrade!

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Should be "First time"

Hi!
Just got back from 10 days in NYC.
Book the flight a while ago ,all Economy, 750$. Good deal, but not great.
Few weeks later they offered the same route for under 600! I bought a winter vacation to MIA for 650$, but that is a different story.

TLV-MAD in Y are absolutely disgracing. Never been on such a crowded airplane in my life, and I flew few charter companies. Absolutely unaccepted for a medium haul flight (5 hours). So crowded I couldn't eat ,y ,eat with knife and fork (I'm not fat and 176cm).

The MAD-JFK sector was quite good. Planned my flight to get the A346 (or A345 - the reconfigured), but I got the old ones. Flight was very good. Short, comfortable seat and very nice plane!

The JFK-MAD flight was different story! While checkin online, I was offered an upgrade for 477$ which I declined because I thought it's too much for 6.5 hours flight and more than half than what I paid for the entire ticket.
Luckily I decided to go for it after all! very smart decision.
There were 9 of us in business! Awesome seat, very attentive purser (male name Alexander) and very good overall experience.
The food wasn't good, but that's doesn't really matter for me.

Does anyone know how and why they are offering it?
At MAD they told me that they want to give people to feeling of Business class. If so how do they decide when and who will get it?

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