Israir Acquires Additional A320 Aircraft for $17 Million
Translated & summarized from Globes by baba
Israeli airline Israir has signed a memorandum of understanding to purchase an additional A320-200 aircraft for $17 million, with the deal expected to close this month. The acquisition is projected to save the company $3 million annually and increase profits. Israir is also reportedly in talks to acquire competitor Arkia, as it plans to expand its fleet significantly by 2030.
The story in 5 lines · by baba
- Israir will purchase an additional A320-200 aircraft for $17 million.
- The acquisition is expected to save Israir $3 million annually in cash flow.
- Israir is reportedly in negotiations to acquire competitor Arkia.
- The airline plans to expand its fleet to 17 aircraft by 2030.
- Israir aims to transport 3.5 million passengers annually by 2030.
Israir, owned by businessman Rami Levy and managed by Uri Sirkis, announced on Thursday it has signed a memorandum of understanding to purchase an additional A320-200 aircraft for approximately $17 million. The deal is expected to be finalized this month. This acquisition comes as Israir is reportedly in negotiations to acquire competitor Arkia, a move first reported by Globes.
The aircraft currently operates under a long-term dry lease for Israir. The company's management estimates that purchasing the plane will save about $3 million annually in cash flow and increase profitability by up to $1 million per year in the coming years. Israir also plans to spend an additional $10 million on a full engine overhaul in the second half of 2027.
Israir currently owns seven aircraft and leases four others. The airline aims to operate a fleet of 10 narrow-body, 5 wide-body, and at least 2 private jets by 2030. The company's annual passenger target is around 3.5 million, compared to the approximately 1.5 million passengers flown from the start of the year until September.
In a previous statement, Sirkis expressed confidence in Israir's growth potential, suggesting it could double in size faster than El Al. This latest aircraft purchase appears to be a step towards realizing that ambition.
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