Israeli leisure operator Israir Group has outlined plans to acquire the remaining shares of Cypriot-based maintenance company Bird Aviation.

The group took a 50% shareholding in Bird Aviation early last year.

Israir Group, in parallel with a first-quarter results disclosure, says its board has reached an agreement in principle to take the outstanding stake from Bird Aerosystems.

It expects to carry out the deal in June.

Bird Aviation MRO-c-Bird Aviation

Source: Bird Aviation

Bird Aviation, based in Larnaca, offers MRO capabilities on types including the Airbus A320

Israir Group says that, under an initial stage, it will acquire about 25% of the Bird Aviation capital for €2.75 million ($2.97 million).

This will be followed by the purchase of another 12.5% for €1.375 million. The seller will also be granted a put option obliging Israir – after two years – to take the remaining 12.5% for €1.375 million, plus interest, subject to performance conditions.

Israir Group stresses that completion of the transaction is subject to the two sides’ signing a detailed final agreement.

The group generated a first-quarter net loss of $729,000 over the first quarter, after revenues dropped by $29 million to $64.7 million, a fall of about 30%.

Israir Group attributes around $22 million of this revenue slump to the loss of business from its tourism arm Diesenhaus whose operation, it says, was shut during the quarter.