Cyprus-based maintenance provider, Bird Aviation, is anticipating the benefits it will receive from Israir Group’s fleet expansion plans and financial capabilities, following the leisure carrier’s announcement of its intention to acquire an additional 50% stake in the business.
Recently, Israir disclosed that its subsidiary, Israir Aviation and Tourism, has agreed to acquire a 25% share of Bird Aviation for €2.75 million ($2.94 million) from Bird Aerosystems, a specialist in defense technology systems. Israir also intends to purchase an additional 12.5% stake for approximately €1.375 million ($1.472 million).
Upon completion of the second stage, Israir will have a put option, which can be exercised two years after the completion of the second stage, to purchase the remaining 12.5% stake in Bird Aviation at the same price, adjusted for an annual 3% interest.
According to Bird Aviation, the gradual repurchase of Bird Aerosystems shares by Israir has been established since the company initially invested in Bird Aviation’s capital in February 2023 by acquiring a 50% shareholding in the MRO provider for around $3 million.
The acquisition is not anticipated to result in any changes to Bird Aviation’s management and development plans. The company has ensured that it will continue to provide support to Israir’s fleet, which currently consists of 11 Airbus A320 aircraft, as well as projects related to Bird Aerosystems modifications.
Capacity expansions are also in progress at Bird Aviation’s Larnaca base, as the company plans to enhance its capabilities by constructing a new hangar with three additional bays, which is expected to be completed by the fourth quarter of 2025.
The growth of its Larnaca operation aims to meet the increasing demand for maintenance services. Bird Aviation recently extended its base maintenance agreement with LCC EasyJet for two more years, covering A320 aircraft, which will undergo maintenance from November to April, accounting for 13 to 15 checks every year.
The company confirmed that its 2024-25 winter base maintenance season is already fully booked due to a high demand for MRO services related to the A320 program. Fred Pralus, CEO of Bird Aviation, stated, “The A320 worldwide fleet is progressing, with the extension of life of the A320ceo fleet also a contributing factor because of the known issues related to A320neo engines. All operators and lessors are in constant search for maintenance slots, and we have to adapt to face this growing demand.”
In addition to A320 family base and line maintenance, EASA-approved Bird Aviation also offers line maintenance on A330ceo aircraft, along with aircraft redelivery and conversion services.
Pralus revealed that the company has been considering adding new capabilities, such as expanding its workshop services to include oxygen systems, wheels and brakes, and avionics. They are also exploring the possibility of adding further aircraft types to their list of capabilities, including the Boeing 737 and Bombardier platforms, as well as obtaining new country authorizations.
The gradual acquisition by Israir is seen as a positive move for Bird Aviation, providing the company with added financial stability and the ability to further develop its maintenance and repair capabilities to meet the growing demands of the aviation industry.