Tuesday, July 18, 2017

Jet Airways may lease out ATRs to TruJet

Mumbai/New Delhi: In order to raise funds, full-service carrier Jet Airways has decided to sublease out its fleet of ATR planes to regional carrier TrueJet.
The deal, which is taking a final shape, could be announced in two months, said people aware of the development. Jet has 15 ATR 72-500s and three ATR 72-600s which are leased from foreign lessors.
The deal may see Jet Airways leasing out the planes in a phased manner, starting with six planes in the first phase.

The move is likely to help the company earn money at a time when it is looking for funds for its fleet induction and expansion plans. The airline appointed J P Morgan to help raise funds. Jet's management has been in talks with Delta for a stake sale. Simultaneously, its founder chairman Naresh Goyal is talking to Etihad, too, for capital infusion. Etihad holds 24 per cent stake in Jet Airways. A Jet Airways spokesperson declined to comment.

TrueJet, which is registered as Turbo Megha Airways, aggressively participated in the first round of bidding of Regional Connectivity Scheme (RCS) and won the right to operate nine routes. The airline has already started flying in three of these routes — Hyderabad-Kadapa, Hyderabad-Nanded and Nanded-Mumbai. A TrueJet executive confirmed that the airline is in discussion to lease the planes from Jet Airways.

"The talks are for dry leases of planes in a phased manner," he said.
18/07/17 Aneesh Phadnis & Arindam Majumder/Business Standard