Jet eyes up to $300 mln from plane sale, lease back

Mumbai: Jet Airways Ltd, India's largest airline, plans to sell and lease back aircraft it owns to raise up to $300 million over the next six months and cut its debt, a top official told Reuters on Tuesday.
The airline, which has a near-quarter local market share, intends to sell and lease back part of the 40 planes that it owns, M. Shivkumar, senior vice-president - finance, told Reuters on Tuesday.
"We have 40 aircraft on our own books. Depending upon the fund requirements, we will go accordingly," he said over the phone.
Sale and lease back is a process where airlines sell planes to a leasing firm which then leases aircraft back to the airline, thereby helping firms save on capex. It is a common process that airlines follow during a slowdown.
Debt-laden Kingfisher Airlines, which cancelled scores of flights this month and is hunting for a strategic investor, also plans to raise funds through sale and lease back of some planes.
On Monday, a source told Reuters that national carrier Air India too plans to sell and lease back Boeing 787 dreamliners to cut its debt.
"We can raise up to $300 million. But it is not necessary we have to raise all of $300 million," Jet's Shivkumar said.
29/11/11 Aniruddha Basu/Reuters/moneycontrol.com

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Categories: Jet Airways Nov 2011