-
Airbus
- Stock Code:
- AIR
- Date Founded:
- 1970-12-18
- CEO:
- Guillaume Faury
- Headquarters Location:
- Toulouse, France
- Key Product Lines:
- Airbus A220, Airbus A320, Airbus A330, Airbus A340, Airbus A350, Airbus A380
- Business Type:
- Planemaker
Israir Airlines has completed its Initial Public Offering (IPO) on the Tel Aviv Stock Exchange, raising close to NIS 25 million ($7.3 million). The airline's parent company, BGI, offered around 10% of its shares to the public, which at the sale price valued the company at around NIS 220 million ($64 million). However, since trading in the stock started on June 23, the price has jumped by around 22%, lifting the company valuation to around NIS 300 million ($87 million).
Israir Airlines (Israir) is the second-largest airline and the biggest tour operator in Israel. It specializes in tour packages to Europe and the Mediterranean, with its flights operating from Tel Aviv Ben Gurion Airport (TLV). The airline operates scheduled and charter flights and, in 2019, carried close to one million passengers.
It currently operates 22 scheduled routes plus its charter services, mainly for its sister travel companies within the group. Israir has a fleet of nine aircraft, which ch-aviation.com lists as five Airbus A320-200s, three ATR 72-500s and a Boeing B737-800. The B737 is wet-leased from Czech airline Smartwings.
The Airbus A320 is the core of Israir's fleet
Israir has restructured during the pandemic and has emerged largely unscathed, which many put down to the skill of its CEO, Uri Sirkis. According to Ifi Today, Sikris said, "we have reached the capital market with a new title, that we are not just an airline but a tourism company that operates aircraft."
"We are now enjoying the excess demand for tourism products, and our vision is to operate seven Airbus aircraft in addition to two or three more leased aircraft depending on demand. To sell destinations within a flight of up to 3.5 hours from Israel and in the leading destinations we will have hotels in which we will be partners."
Israir is transitioning to operating only Airbus jets
On Sunday, the airline announced it is "parting ways" with the three ATR turboprops. These were used domestically to the Red Sea resort town of Eilat, and within a year those services will be flown on an Airbus jet. The announcement did not specify which type of Airbus jet would be added. Israir said it had received an offer from a foreign company interested in purchasing the two ATR aircraft it owns, at a total value of around $12 million. It said that if that sale occurs, it will lease an extra Airbus aircraft, the seventh in its fleet. They seem to have the right price in mind, as ch-aviation.com estimate the two ATR 72-500s have a value of $12.22 million.
BGI is owned by Rami Levy and business partner Shalom Haim, who acquired 51% of Israir in January 2021, with Levy acquiring a further 24%. Levy is credited with introducing discounted shopping to Israel, building a chain of more than 40 supermarkets plus other retailing businesses from a single store. A bonus from the IPO is that, with the company now publicly listed, Israir qualifies to receive around NIS 70 million ($20 million) in pandemic-related state aid.
It will be interesting to see which Airbus aircraft are added to the Israir fleet, particularly for the one-hour flight from Tel Aviv to Eilat. The route is shared between the ATR 72-500 and the A320, so it seems likely to be an A320. Or perhaps an A220?
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Source: Ifi Today