Jet Airways (India) Ltd has entered into a fresh aircraft leasing arrangement with Turkish Airlines for its Airbus 330-200 wide bodied jets.
The Indian company, which is 24 per cent owned by Etihad Airways, will lease out three of its idle A330s to the Turkish carrier for six years, according to sources.
A Jet spokesperson did not comment on the development, and the financial details could not be ascertained.
At the end of the second quarter, Jet said it had grounded five A330s and had initiated discussions with players for both an outright sale and long-term lease arrangements.
If the company is successful in an outright sale of these aircraft, its debt portfolio will shrink by $200 million, the airline's chief financial officer Ravishankar Gopalakrishnan had said then. Debt at the country’s second largest airline was at $1.9 billion as on September 30, 2013.
Indian companies are keen to lease out their idle aircraft to tide over mounting losses. For Q2, Jet Airways had reported a net loss of Rs 891 crore. Of this, Rs 123 crore in losses were related to aircraft on ground.
Earlier, Jet was close to leasing out all five aircraft to Kuwait Airlines, but the deal fell apart with the Kuwait government suspending the flag carrier’s chairman, Sami Al-Nesif.
Turkish Airlines and Jet Airways have a long history of commercial arrangements. News reports suggest that the two airlines have been leasing partners since 2008. In 2010, Turkish Airlines has inked an agreement with Jet to take three Boeing 777s on lease.
Recently, Air India invited bids from leasing companies to sell its Boeing 787 Dreamliner jets and is set to hire them back on monthly rentals as part of its strategy to raise cash.
adith.charlie@thehindu.co.in