The former insolvent Indian low-cost carrier, Jet Airways is said to be in talks with two of the world largest aircraft manufacturers as the carrier seeks to revive commercial operations once again. Back in 2019, the Delhi-based carrier was forced to suspend commercial flight operations following years of severe losses and unprofitability while incurring a significant amount of debt.
According to Bloomberg News, the new owners of Jet Airways are in talks with both Airbus and Boeing for a potential order of up to 100 new aircraft, in a deal that is set to worth USD$12 billion dollars.
This news comes after an Indian bankruptcy court approved a resolution plan in June to revive the debt-stricken airline under a joint consortium between the London-based Kalrock Capital and a UAE-based business tycoon, Murari Lal Jalan. Over the next six months, the consortium is expected to invest close to USD$200 million in equity and debt financing into the airline and hopes to restart operations by mid-2022.
In a press release, Murari Lal Jalan said, “Jet Airways 2.0 aims at restarting domestic operations by Q1-2022, and short-haul international operations by Q3/Q4 2022. Jet Airways is now left with a fleet of 11 planes, including Boeing 737s and 777s, as well as Airbus A330 jets. But those aircraft are mostly old and need to be sold and replaced with newer, more fuel-efficient ones.”
While Boeing could consider a previously placed order for 225 737 MAX aircraft, Airbus is looking to secure orders from the airline for its short-haul A320neo. Meanwhile, Murari Lal Jalan is looking for an aircraft that will be something that will cover the airline “for the next five to six years,” with a final decision expected to be made by the end of next month.
According to the new owners, Jet Airways will still be a full-service airline, with a business class element in most aircraft once the airline starts operations. The airline will also be seeking to target the corporate market, where Jet Airways used to dominate and is aiming to have strong connections in major cities such as New Delhi, Mumbai and Bangalore.
