SpiceJet, which grounded 13 Boeing Max 737 planes, may have to shell out more for leasing aircraft as rentals have shot through the roof.
The grounding of over 300 of Boeing 737 Max 8 planes across the globe, following two crashes, has sent aircraft lease rentals soaring, according to airline insiders.
Two senior executives of different domestic airlines, who spoke to DNA Money anonymously, said post the decision by most carriers around the globe to not fly the Max 8 planes till the fault in its software was fixed has led to a scarcity of Boeing planes in the market.
One of them said this crunch in availability of Boeings has bloated aircraft rental costs.
Following two air crashes, which involved Boeing 737 Max 8, in less than five months aviation authorities of many countries – India, China, Australia, UK, Germany, Indonesia and others – have ordered grounding of the Max 8.
One of the airline executives DNA Money spoke to, said all the carriers, which have grounded Max 8 aircraft would be looking to lease planes to continue their flight services.Even SpiceJet is reportedly considering hiring planes to operate the flights for which it has already sold tickets.
"SpiceJet will reach out to airlines and lessors for available capacity," he said.
According to reports, SpiceJet may wet lease planes to continue its services. Acquiring planes on wet lease means getting the aircraft along with crew (both pilots and cabin crew) and is usually from an airline. Dry lease involves only aircraft.
According to the an executive, the rentals for aircraft aged five years or more were currently "roughly" starting from "$350,000-$400,000 per month". This, he said, was higher than the rentals for similarly aged planes before the grounding of Max 8s.
18/03/19 Praveena Sharma/DNA
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The grounding of over 300 of Boeing 737 Max 8 planes across the globe, following two crashes, has sent aircraft lease rentals soaring, according to airline insiders.
Two senior executives of different domestic airlines, who spoke to DNA Money anonymously, said post the decision by most carriers around the globe to not fly the Max 8 planes till the fault in its software was fixed has led to a scarcity of Boeing planes in the market.
One of them said this crunch in availability of Boeings has bloated aircraft rental costs.
Following two air crashes, which involved Boeing 737 Max 8, in less than five months aviation authorities of many countries – India, China, Australia, UK, Germany, Indonesia and others – have ordered grounding of the Max 8.
One of the airline executives DNA Money spoke to, said all the carriers, which have grounded Max 8 aircraft would be looking to lease planes to continue their flight services.Even SpiceJet is reportedly considering hiring planes to operate the flights for which it has already sold tickets.
"SpiceJet will reach out to airlines and lessors for available capacity," he said.
According to reports, SpiceJet may wet lease planes to continue its services. Acquiring planes on wet lease means getting the aircraft along with crew (both pilots and cabin crew) and is usually from an airline. Dry lease involves only aircraft.
According to the an executive, the rentals for aircraft aged five years or more were currently "roughly" starting from "$350,000-$400,000 per month". This, he said, was higher than the rentals for similarly aged planes before the grounding of Max 8s.
18/03/19 Praveena Sharma/DNA
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