Jet Airways places Airbus in the lead for its $5.5 billion contract for A220/320 aircraft

According to persons familiar with the situation, Airbus SE has emerged as the front-runner to secure an aircraft order from Jet Airways India Ltd. worth up to $5.5 billion, strengthening the European planemaker’s position in the world’s fastest-growing aviation sector.

The people, who asked to remain anonymous since the discussions are confidential, stated that the talks are for A320neo jets and A220 aircraft. A final decision has not yet been made, according to the people, and conversations are also ongoing with Boeing Co. and Embraer SA. Although any transaction would cost more than $5 billion if it were made at sticker pricing, reductions are usual in such large purchases.

Requests for comment from representatives of Boeing and Airbus were not immediately fulfilled.

The former top private airline in India, Jet Airways, received its pilot’s licence last month, making history as the first company to be revived under the country’s new bankruptcy regulations. The airline’s operational preparedness was confirmed by the flying permit, indicating the airline’s transformation into a “new avatar with fresh funds, altered ownership, and new management,” per a statement.

As of Monday, a Jet Airways official said: “We are in final discussions with lessors and OEMs for aircraft. Once we have reached a decision, we will announce our aircraft choice and fleet plan.” “We are researching every option to see which one will work best for us.”