Israir Group is entering an agreement to take a 50% share of the Cypriot-based maintenance specialist Bird Aviation.
The Israeli company, which centres on leisure carrier Israir, says its board approved the deal on 7 February.
As a result it will share the ownership of Bird Aviation with Bird Aerosystems.
Bird Aviation focuses on base and line maintenance of Airbus A320s, the primary type in Israir’s operation following its withdrawal of its ATR turboprops.
Israir Group says it will pay €3 million ($3.2 million) for the shareholding and provide a further infusion of €5.1 million as a loan.
Bird Aviation will use the proceeds to pay off an existing loan to Bird Aerosystems.
The maintenance company holds a number of licences including Israeli and European Union Aviation Safety Agency Part-145 authorisation.
Bird Aviation’s activities also include engine servicing, aircraft modification and reconfiguration.