Israir entered into a binding, full and final agreement to purchase an Airbus aircraft from one of the company’s aircraft lessors. As part of the contract, it was agreed that in return for the transfer of approximately 24 million dollars by March 12th, 2024, minus an advance payment of approximately two million dollars and additional collateral, the sale of the aircraft and its transfer to the company would be completed.

Also, Israir will contribute another five million dollars in the renovation of the plane’s engines, so that the total cost of the plane to the company will reach 29 million ILS.

Israir Group, the controlling owner of Israir, states that “the company sees the purchase of the aircraft as a strategic opportunity to strengthen the position of the company’s aircraft fleet, improve the capital structure, improve EBITDA and improve the company’s cash flow during the year 2024 and beyond”.

Israir Group intends to issue series A bonds in order to raise money to purchase the Airbus aircraft. The company’s board of directors authorized the company’s management to examine options for financing the purchase and as part of the company’s strategy to strengthen the capital structure and improve cash flow, the company’s board of directors approved the examination of the possibility of raising debt, by issuing bonds.

After the purchase of the plane, Israir will own three planes with a total value of about 70 million dollars, and together with the company’s hotel real estate, the value of the aviation and tourist real estate alone will reach about 100 million dollars.

Israir Group’s share has increased since the beginning of the year on the Tel Aviv Stock Exchange by 7.30%, since the beginning of the month by 2.10% with a value of 411.181 million ILS.

Photo: Moni Shafir