Israir (6H, Tel Aviv Ben Gurion) has announced in a stock exchange filing that it plans to purchase one of the A320-200 aircraft that is currently in its fleet under an operating lease for approximately USD24 million.

The airline has been operating 4X-ABT (msn 6200) since July 2021, according to ch-aviation fleets data. The transaction includes an advance of about USD2 million and is expected to be completed by March 12, 2024.

A total of USD14.6 million will be financed via an already-approved bank loan, while the rest will be funded through a convertible bond issue.

“The company sees the aircraft acquisition as a strategic opportunity to strengthen its aircraft fleet and improve its capital structure, EBITDA, and cash flow during the year 2024 and beyond,“ Israir said. Additionally, it noted that the purchase should help it deal with the effects of the ongoing Israel-Hamas war.

4X-ABT is a 9.64-year-old aircraft owned by lessor AviLease with International Aero Engines V2500 engines. Including this A320, AviLease has a total of 150 aircraft with customers at the moment, its biggest customers being IndiGo Airlines (6E, Delhi International) with 15 aircraft and flynas (XY, Riyadh) with 14.

Israir has a fleet of six aircraft, all A320-200s. After completing the latest transaction, three will be company-owned while the other three will remain under operating leases.