Israeli flag-carrier El Al has signed an agreement under which investment fund FIMI will provide up to $75 million to the airline and take joint control.
FIMI's discussions to invest in El Al emerged at the beginning of this year, but the details of the proposed deal have changed substantially.
The carrier says that, under the agreement signed on 13 April, FIMI will invest up to $50 million by July 2013, in exchange for shares in the airline.
FIMI will also be granted two options, each involving further investment of $12.5 million, to take further shares. These options will respectively run to 2014 and 2016.
El Al chief executive Elyezer Shkedy says FIMI is a "very serious" investor with "proven capabilities".
He highlights the "significant, importance and opportunity" which the fund's involvement brings to the airline.
FIMI and current El Al investor Knafaim Holdings would jointly have about 57-60% of the airline depending on the final transaction.
Completion of the transaction is still subject to Israeli competition authority approval and that of the airline's shareholders.