The Centre for Asia Pacific Aviation (CAPA) estimates that Jet Airways could be ordering over 100 aircraft valued at a list price of over $12 billion at the Paris Air Show which is to begin on June 17. The aircraft order is likely to be equally divided between Boeing and Airbus.

The CAPA report on ‘India Aviation outlook 2013-14’ states that “CAPA understands” that the airline has already confirmed an order for 50 Boeing 737 MAX aircraft, together with 8-to-10 Boeing 777-300 Extended Range (ER) aircraft, which will be announced at the Paris Air Show. Jet officials were unavailable for comments.

The Boeing Web site shows the list price of each Boeing 737 Max varying from $82 million to $107.3 million, while the list price of a Boeing 777-300 ER is $315 million. The report adds that CAPA expects a further order for over 50 A320 neos, which will utilised by its low-cost subsidiary, JetKonnect. The Airbus Web site states the list price of each aircraft at $100 million.

While the list price for the order is valued at over $ 12 billion, Jet Airways is likely to pay less as it is not uncommon for aircraft manufacturers to offer discounts for huge orders placed by an airline.

SpiceJet

The report expects that SpiceJet will secure a new investor, possibly a foreign airline, within the next three-to-six months. At a recent seminar here, the airline Chief Executive Officer, Neil Mills, had said that the airline was in no hurry to get in a foreign investor.

GoAir

The report also expects GoAir to induct a financial or strategic investor in fiscal 2014 and may even consider an IPO.

The report points out that with the Jet Airways-Etihad deal now concluded, it expects serious interest to follow from others.

“Qatar Airways’ preferred market strategy for the market is likely to consist of seeking an increase of 50,000 weekly seat entitlements and entering into a codeshare agreement with IndiGo; however, we do not rule out the prospect of them investing. Other potential suitors include All Nippon Airways, Lion Air, Tiger Airways and even Singapore Airlines,” the report adds.

ashwini.phadnis@thehindu.co.in

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