euroAtlantic Airways (YU, Lisbon) temporarily seized an Israir (6H, Tel Aviv Sde Dov) A320-200, 4X-ABG (cn 4413), when it landed in Lisbon on Sunday, May 24 citing unpaid leasing dues dating back to 2008. The exact amount owed was not disclosed though it is said to run into the "millions" of Euros.

The dispute dated back seven years to a 2008 contract in which the Israeli carrier had wet-leased a B767-300(ER) from the Portuguese ACMI specialist to service its Tel Aviv Ben Gurion-New York JFK route. Though the contract was to have run from February 1 to March 31, 2008, Israir reportedly cancelled it after only one month leading to the dispute.

However, according to an Israir press release, CEO Uri Sirkis reached an agreement with euroAtlantic chairman Tomaz Metello leading to the aircraft's release on Tuesday evening.

"The two sides have reached an understanding about the amount that Israir will pay to EuroAtlantic, which will withdraw its request to impound the Israir plane in Lisbon," it said. "They also agreed that after the dispute is ended they will enter into commercial cooperation procedures in the field of tourism and hotels."