Egyptian President Mohammed Morsi has fired his intelligence chief and the governor of Northern Sinai following the deadly weekend attack on troops by suspected militants in Sinai.

In a major shake-up, Morsi also asked Defense Minister Hussein Tantawi to replace the commander of the military police, a force that has been heavily used since the ouster 18 months ago of Hosni Mubarak.

Helicopters carried out missile strikes against Islamic militants in Egypt's first airstrikes in the Sinai Peninsula since 1973, as the military said Wednesday it was launching an offensive to "restore control" over the territory following the bloodiest ever militant attacks on the army.

The use of air power marked a sharp escalation in Egypt's fight against Islamic militants who have become increasingly active in the mountainous, desert peninsula bordering Israel and Gaza.

Earlier this week, militants stunned the Egyptian army with a bold, surprise attack in which gunmen killed 16 soldiers, stole armored vehicles and drove into Israel to attempt another attack.