Israir Group, parent of leisure carrier Israir (6H, Tel Aviv Ben Gurion), has made another strategic move, announcing in a stock exchange filing on February 8 that it had signed a deal to buy 50% of Larnaca-based MRO firm Bird Aviation. The Cypriot company specialises in base and line maintenance of narrowbodies including Airbus A320s, the type that dominates the carrier’s fleet.
Israir will pay about EUR3 million euros (USD3.2 million) in cash for the purchase and provide a loan of EUR5.1 million (USD5.5 million) to Bird Aviation in owner financing. Former 100% owner, the Israeli defence tech innovator Bird AeroSystems, will keep a 50% stake in the Cypriot facility, which also specialises in the maintenance, repair, and overhaul of B737 Family aircraft.
Bird Aviation will use all of the proceeds to partially pay off an existing owner’s loan to Bird AeroSystems, the filing said, adding that the MRO firm “holds several maintenance licences, including European and Israeli Part-145” authorisation. It also provides redelivery services as well as aircraft modifications and cabin reconfigurations.
Israir said it anticipates that the acquisition will give it “an advantage in terms of operational flexibility, will advance the company’s growth strategy in connection with its ambition to increase the fleet, and strengthen its maintenance infrastructure in Israel and abroad.” Bird AeroSystems meanwhile commented that “we see Israir as an important strategic partner that will advance the subsidiary Bird Aviation, and together we will enable it to continue to grow and develop.”
The airline reiterated in the disclosure its move, announced in late December, to sell its last two ATR72-500 turboprops. That will, according to the ch-aviation fleets module, leave it with six A320-200s. Israir said it anticipated having an all-Airbus fleet by the second quarter of 2023 and is currently “promoting the reception of a seventh A320.”
