Israir Group has signed a deal to buy 50% stake in Larnaca-based maintenance, repair and overhaul (MRO) company Bird Aviation, the company announced in a stock filing. The group will pay $3.2 million in cash for the purchase and provide a loan of $5.5 million to Bird Aviation in owner financing. Former owner, Bird AeroSystems will retain a 50% stake in the MRO facility.
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.”
As per the filing, Bird Aviation plans to use all of the funds to pay off an existing owner’s loan to Bird AeroSystems.
Bird AeroSystems 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.”
Bird Aviation specialises in base and line maintenance of narrowbody aircraft like Airbus 320s along with maintenance, repair, and overhaul of B737 Family aircraft. The MRO firm also holds several maintenance licences, including European and Israeli Part-145” authorisation besides providing redelivery services as well as aircraft modifications and cabin reconfigurations.