Jet Airways to lease 6-8 planes by December under relaunching plans; stock tumbles ~5%

30 Jun 2022 , 12:49 PM

As per the sources, Jet Airways Limited is in talks with aircraft manufacturers and lessors about leasing 6-8 planes, including some that were scheduled to be delivered to Russian carriers prior to the Ukraine war, as it prepares for a relaunch.

Furthermore, the airline is negotiating with airport operators to secure slots with "good" timings.

The carrier, which was once a major player in Indian aviation, has been inoperative since April 17, 2019 and is being revived under the ownership of the Jalan-Kalrock consortium.

Jet Airways confirmed that it is in "advanced discussions" with lessors and original equipment manufacturers (OEMs), but provided no further details.

Last month it received its air operator certificate revalidated by the aviation safety regulator DGCA.

"Aircraft availability has always been an issue, but due to the Russia-Ukraine war, aircraft that were scheduled to be delivered to Russia are now available on the market, along with those leased planes that were flying in Russia."

Sources hint that the airline is in talks with Boeing, Airbus, and the lessors and that discussions are at a very high level, with an announcement expected very soon. The company is looking to lease 6-8 aircrafts by December 2022.

In order to acquire a large number of aircraft, an initial agreement must be signed with the aircraft manufacturer, as the "competition" between Boeing and Airbus is very clear.

The source stated that Jet Airways is considering flying to Mumbai, Goa, and Bengaluru, among other destinations, from its new base in Delhi, but that network planning is still being finalised as the airline looks for airport slots.

Jet Airways (India) is currently trading at Rs109.20 down by Rs5.7 or 4.96% from its previous closing of Rs114.90 on the BSE. The scrip touched intraday high and low of Rs115.50 and Rs109.20 respectively.