Aviation
India’s Jet airways is in talks with Boeing and Airbus about a $12 billion order.
The new owners of the once-bankrupt Jet Airways India Ltd. are in talks with Boeing Co. and Airbus SE to purchase at least 100 narrowbody jets for the carrier’s fleet in an effort to resurrect what was once the country’s largest private airline before collapsing under a mountain of debt.
The consortium that won the bid for Jet Airways in a state-run bankruptcy resolution process – Dubai-based Indian-origin businessman Murari Lal Jalan and Florian Fritsch, chairman of London-based financial advisory and alternative asset manager Kalrock Capital Management Ltd. – plan to begin flights in the first three months of next year, according to Ankit Jalan, a representative for the consortium, in an interview with Bloomberg News.
Jet Airways now operates 11 planes, including Boeing 737s and 777s as well as Airbus A330s. However, those aircraft are mostly old and should be sold and replaced with newer, more fuel-efficient models, according to Mr Jalan. A deal for the most popular model of Boeing 737 Max jets could cost more than $12 billion, though large-order discounts are common.
Jet airways Boeing 777
Mr Jalan stated that options for the plane deal include both outright purchase and leasing. While Airbus is considering early deliveries of its most popular A320neo jets, which have already been sold out for several years, Mr Jalan believes Boeing may reconsider an old 225-plane order for 737 Max aircraft that Jet Airways placed before going bankrupt. A decision is expected to be made by early next month.
