Worth $24 Million: Israir to Purchase Airbus A320

Israir announced today (Sunday) to the Stock Exchange that over the weekend it signed a binding agreement to purchase an Airbus A320 aircraft, which it currently leases and operates. The price of the aircraft is approximately $24 million, and Israir is also expected to invest an additional approximately $5 million in engine refurbishment.

After the purchase, Israir will operate six Airbus A320 aircraft - three owned by the company and three more on long-term lease, operated by the company's crews.

Israir stated that it intends to finance the purchase through a loan of 50% from a banking institution and the remaining 50% through the issuance of convertible debt. Israir estimates that the aircraft acquisition is expected to improve its cash flow.

Before the outbreak of the Iron Dome war, Israir operated passenger planes on a "wet lease," with foreign air crews. It is still unclear whether towards the summer holiday season, the company will resume operating aircraft on a "wet lease" basis.