Logistics

Jet to lease 5 aircraft to West Asian airline

Our Bureau New Delhi | Updated on August 12, 2013 Published on August 12, 2013

Jet Airways is looking at leasing out five aircraft to a West Asian carrier, a deal which is expected to be completed in the next one month or so, K.G. Vishwanath, Vice-President – Commercial Strategy and Investor Relations, Jet Airways, said on Monday. The airline has also leased out two aircraft to Etihad Airways.

The airline has excess aircraft in its fleet as it pulled out of some long haul routes, such as Delhi-Milan, Chennai-Brussels and Brussels-JFK (New York) during the last fiscal. Without getting into specific numbers, Vishwanath said, “The impact of the grounding of these aircraft in this quarter alone is about Rs 122.8 crore.”

Jet also has on order 10 Boeing 787 aircraft and five Boeing 777 aircraft. The airline plans to add one Boeing 737 aircraft a month during this financial year. However, its overall fleet size will only go up by about six aircraft, as five to six of the leased capacity will be returned, Vishwanath said.

“Of the six aircraft being inducted, two will be for domestic operations and four for international business,” he added.

Network study

The airline has embarked on a10-year network study, which will help it identify its long-term footprint as well as future capacity deployment. “The order for more aircraft will get determined as an outcome of this and any incremental increase in orders will come only after the network study is finished,” he said.

Meanwhile, the significant depreciation in the rupee and resultant higher fuel prices coupled with private airports increasing airport charges could impact the airline’s operating results for the next one or two quarters.

ashwini.phadnis@thehindu.co.in

Published on August 12, 2013
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