Israeli flag carrier El Al is to take control of fellow Israeli airline Israir. The acquisition, which is subject to approval by the country’s antitrust authority, will use El Al charter subsidiary Sun d’Or as the vehicle through which Israir will be acquired.

Israir is a privately owned package holiday company that sells accommodation as well as low-cost flights. The acquisition will allow El Al to diversify its revenue streams.

Israir is currently owned by IDB Tourism, part of IDB Group, which has interests in several sectors of the Israeli economy.

In a complex process, IDB Tourism will transfer to Sun D’or 100% of Israir shares in return for the allotment of 25% of the shareholding of Sun D’or. The latter company will also pay up to $24 million for Israir.

Assuming the deal is given the go-ahead by competition authorities, Israir will become a fully owned subsidiary of Sun D’or, while Sun D’or will be owned 75% by El Al and 25% by IDB Tourism.

“The transaction is an important step in the implementation of El Al’s long-term strategy of expanding and diversifying the range of services and products offered by the company,” El Al CEO David Maimon said.

“The transaction will enable the group to increase the group’s revenues and operations.”

On completion of the transaction, Israir will sell and lease back the aircraft it owns to third parties.