Jet Airways Defers Delivery Of Boeing Planes

New Delhi: Jet Airways (India) Ltd. said it has deferred delivery of nine Boeing Co. planes for its low-fare unit, JetLite, planned for this financial year due to the current slowdown in air travel.
The company has also decided to repay loans worth $150 million to several banks in the year that began April 1, a senior executive at India's second-largest carrier by market share told Dow Jones Newswires late Monday.
"This deferment (of aircraft deliveries) is part of our plan of not expanding capacity this year," the executive, who declined to be named, said.
"We are only taking delivery of one aircraft this August. The rest of the deliveries will now be from financial year 2010-2011 onward," the executive said.
Indian carriers are deferring delivery of new planes as the slowing global economy shrinks demand for air travel.
Local carriers likely posted a combined loss of up to $1.4 billion in the financial year ended March 31, the Center for Asia Pacific Aviation, a Sydney-based consultancy, said in May.
Jet Airways has already deferred deliveries of eight long-haul Airbus and Boeing planes - five Airbus 330s and three Boeing 777s - to the next financial year, as it has halted plans for further international expansion.
Its rival Kingfisher Airlines Ltd. has deferred taking delivery of 32 of 48 Airbus A320 planes that were due to arrive in late 2008 and in 2009. And Air India, the nation's flag carrier, said earlier this month it will sell 11 of its Airbus A320 planes and return an equal number to lessors.
23/06/09 Anirban Chowdhury/The Wall Street Journal

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Categories: Foreign Jun 2009, Jet Airways Jun 2009