Jet to cancel a Boeing 777 plane order

Working towards cutting excess capacity, Jet Airways is negotiating with aircraft manufacturer Boeing to cancel its order for a B777 jet, worth Rs 725 crore, which is scheduled
"The management is in talks with Boeing over canceling/finding another buyer for the Boeing 777 (Capex at $145 million) that was due for delivery in August 2009," brokerage firm IDFC-SSKI said in a report on Jet Airways after a management interaction.
When asked if Jet is canceling the order for a B777 aircraft scheduled for delivery August 2009 or finding another buyer for the airplane, the company spokesperson said, "Jet Airways is scheduled to take delivery of a Boeing 777 in July 2009. We are currently in discussions with Boeing in this regard".
The carrier has already reduced capacity on its network by 20 per cent and plans further capacity cut.
"We have already reduced our capacity by 20 per cent and will do another 10 per cent," Jet Airways Chairman Naresh Goyal had said in Kuala Lumpur earlier this week.
While declaring Q4 results last month, Jet had said that anticipating challenging times for the sector, it has initiated a cost reduction exercise which includes deferring aircraft deliveries for the next one to two years.
11/06/09 PTI/Business Standard

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Categories: Jet Airways Jun 2009