Logistics

TruJet may soon begin operating 5 aircraft as lessors have reduced lease rentals

Forum Gandhi Mumbai | Updated on September 04, 2020 Published on September 04, 2020

A Trujet flight at the Mysuru airport (File photo)   -  MA Sriram

TruJet may start flying routes as it has been able to negotiate lease agreements with lessors for five aircraft. Lessors of the low-cost carrier had grounded five out of seven aircraft over unpaid dues.

According to a person in the know, “TruJet has cleared its past dues and has further negotiated the lease agreements with the lessors. Negotiations with one have reached an agreement while the conversations with the other lessor are still on,” the source said, adding that it is likely that TruJet will be able to resume normal operation by this month-end.

While TruJet did not respond to queries sent by BusinessLine, one of the spokespersons at Elix, the lessor said, “We cannot comment on specifics with a lessee. The two aircraft you mention will return to service in accordance with their original lease terms.” An email response sent to its other lessor, DAE, did not get a response.

Also read: Regional airline Trujet to cut salaries by 50-60%

TruJet has aircraft of the ATR family in its fleet. Together, TruJet owed dues to the tune of over ₹270 crore to the lessors. TruJet was badly hit because of the Covid-19 pandemic.

According to the DGCA data for July, TruJet cancelled 37 per cent of its flights. It carried only 0.10 lakh passengers compared to 0.15 lakh in June.

TruJet was established in July 2015 by Turbo Megha Airways in Hyderabad. The carrier operates a route network primarily focussing on the country’s central Andhra and Telangana regions, with destinations including Tirupati, Hyderabad, Aurangabad, Vijayawada, and Rajahmundry.

In response to BusinessLine’s query, the third lessor Aergo Capital said that it still has two aircraft on lease to TrueJet. “Both remain on lease and in operation in accordance with the leases,” Antony Snelleman, Co-Chief Commercial Officer and Head of Risk at Aergo Capital, said.

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Published on September 04, 2020
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