Jet Airways in advanced talks to order 50 Airbus A220

JET AIRWAYS

Jet Airways is in advanced talks to order about 50 Airbus SE A220 aircraft, according to people familiar with the matter, marking what could be a fresh beginning for the bankrupt carrier that’s attempting to make a comeback.

Deliveries of the new aircraft will start in 2025, the people said, asking not to be identified because the discussions are confidential.

A deal for 50 such planes would probably be valued at around USD 1.8 billion after usual discounts, according to figures from leading aircraft appraiser Avitas. It’s unclear whether the planes will be bought outright by the airline or leased, or a mixture of both.

Jet Airways is in advanced talks to order 50 Airbus A220

ALSO READ – Jet Airways nearing a deal to buy 50 A220 jets from Airbus

The deal is still being finalized and is yet to be signed. The airline, once India’s top private carrier, is undergoing a court-monitored restructuring and seeking to reenter a market notorious for cut-throat fare wars and some of the world’s costliest jet-fuel prices.

IndiGo, operated by InterGlobe Aviation, is the clear leader, controlling over 50% of the domestic market while more than half a dozen carriers fight for the rest.

ALSO READ – Jet Airways to lease 6-8 aircraft by December; in talks with aircraft manufacturers and lessors

JET AIRWAYS
Deliveries of the new aircraft will start in 2025

Jet Airways, planning to return with a mix of premium and no-frills services, is also in separate talks with Boeing Co. and Airbus to potentially place a “sizable” order from the 737 Max or A320neo families of jets. In fact, before going bankrupt, the carrier had a massive order for the 737 MAX 8 of 125 units and had received eight of them.

Dubai-based, Indian-origin businessman Murari Lal Jalan and Florian Fritsch, the chairman of London-based financial advisory and alternative asset manager Kalrock Capital Management Ltd., are in the process of taking over Jet Airways.

The airline is “in the very final stages of discussions” with lessors and planemakers for aircraft, as well as for engines, a representative for Jalan and Kalrock said in a statement.

Before going bankrupt, Jet Airways had a massive order for the 737 MAX 8 of 125 units and had received eight of them.

“We will announce our aircraft choice, sourcing, and fleet plan when the process concludes.” A representative for Airbus said the planemaker is “always in discussions with all its existing and prospective customers to understand and support their fleet requirements.”

ALSO READ – Jet Airways to only operate domestic flights as it resumes operations

Jet Airways will initially start operations with leased aircraft considering plane manufacturers with limited production capacity are usually sold out years in advance, they said.

Because planemakers have such long lead times for delivery, so-called pre-delivery payments are made in instalments, with as little as 1% of the aircraft value actually forked out at the time of the order.

Jet Airways will initially start operations with leased aircraft considering plane manufacturers with limited production capacity are usually sold out years in advance

Before folding in 2019, the Delhi-based carrier operated a fleet of mostly Boeing 737 narrowbodies. However, following the restructuring, it currently has nine aircraft listed in its fleet.

Three are Boeing 737-800s, one a 737-900, and the remaining five are 777-300ER widebodies. It has an average fleet age of 16 years; though an extensive expansion is required if it plans to rebuild its previous network.

Any revival of Jet Airways, which collapsed under a pile of debt in 2019 and became the first airline to enter a reformed insolvency resolution process, would be a landmark moment for India’s bankruptcy laws.

(With Inputs from Bloomberg)

Responses

Feed
Jobs
News
Magazine