Wednesday, May 29, 2024

Jet Airways Orders 5.5 Billion USD Worth Of Aircraft, With Airbus Taking The Lead

By Vaibhav Agrawal

Airbus SE has emerged as the front-runner for Jet Airways India Ltd.’s order for up to 50 aircraft valued at up to USD 5.5 billion, strengthening the European planemaker’s position in the aviation industry’s fastest-growing market.

According to sources, Jet is in talks with Airbus primarily about purchasing A320 Neo and A220 aircraft, the latter of which is used mainly for regional connections under the UDAN programme. The company was “in final negotiations with lessors and OEMs for aircraft,” a Jet Airways spokesperson stated.

According to the people, a final decision has not yet been made, and conversations are also ongoing with Boeing Co. and Embraer SA. Although every transaction would cost more than USD 5 billion if it were made at sticker pricing, reductions are usual in such large purchases. Airlines can lease jets from lessors who purchase bulk even though delivery slots are limited.

The proposed purchase would coincide with Jet Airways’ impending relaunch as India’s leading private airline. Last month, Jet Airways received its pilot’s licence, becoming the first company to be revived under the country’s new bankruptcy laws.

Its transformation into a “new avatar with fresh money, changing ownership, and new management” was signalled by the flying permission, which demonstrated Jet Airways is prepared to operate.


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