Wednesday, September 12, 2018

Jet Airways in talks to lease A330s, Boeing 737s to Oman Air

Mumbai: Cash-strapped full service airline Jet Airways is in talks with Muscat-based Oman Air to wet-lease three of its widebody aircraft, the A330s, and few of its narrowbody Boeing 737s, sources in the know of the discussions told FE. The number of the Boeing737 aircraft to be leased, however, could not be ascertained. Nearly 150 of Jet’s cabin crew have already been interviewed for the same. A wet lease is a leasing arrangement where an airline owning an aircraft asset provides to the other airline its aircraft with complete crew along with maintenance and insurance (ACMI) expenses and gets paid on per hour basis multiplied by the number of hours that aircraft is flown by the lessee airline.

“Wet lease works brilliantly for Jet under current circumstances of financial strain the airline is going through as the aircraft it’s leasing out are the owned assets or on financial leases,” said Mark D Martin, founder and CEO at Martin Consulting, an aviation advisory and consultancy firm. Jet had earlier also leased its long range aircraft type, the Boeing777-300ER, to Turkish Airlines.
Jet might look at an income of nearly a million dollar per month per aircraft through these wet leases, Martin said. “For roughly a 240 hour of flying on a month usually an ACMI for an A330 type will be between $4,000 to $5,000 per hour,which will be around $9,60,000 per month that Jet will get for its each aircraft as the cash operating cost is paid by the airline that is leasing it. Similarly a 737 will fetch $2,800; so for 240 hours of flying it would be roughly be $6,72,000 per month,” he said.
12/09/18 Manisha Singhal/Financial Express