Mumbai : Beleaguered Jet Airways is in an advanced stage of discussions with TruJet to sub-lease up to seven of its ATR planes to the regional airline as it seeks to reduce costs and mop up additional revenues, according to an industry source.
These planes are likely to be sub-leased with complete crew, maintenance and insurance.
Currently, the Naresh Goyal-promoted full service carrier has 15 ATRs in its fleet. TruJet, which started operations in July 2015 has an all ATR fleet.
Planes to be leased with complete crew, maintenance
The deal may be stitched this month, the source privy to the development said.
Jet Airways had attempted to phase out these regional jets in the past as well.
“Both Jet Airways and TruJet are in an advanced stage of negotiations on the ATR deal. As per the on-going discussions, TruJet will initially lease seven ATRs from Jet Airways,” the source said.
While TruJet confirmed it is in discussions with Jet Airways, the latter said that “it continues to evaluate all possible alternatives”.
Partially-owned by Gulf carrier Etihad, Jet Airways has been facing turbulence since the beginning of this year, having reported a massive loss of over Rs 1,000 crore in March quarter.
The source said that the sub-lease period was likely to be for five years under a wet lease arrangement. “If the deal gets through, TruJet could opt for more such planes from the airline,” the source added.
A wet lease is an arrangement under which one airline provides an aircraft, its complete crew, maintenance and insurance.
“We are working on options to induct up to seven aircraft for short period from Jet Airways,” a TruJet spokesperson said. The Hyderabad based airline had last month said it plans to acquire five to seven ATRs and expand the network to 20 more routes by the end of FY19.
The carrier currently has five ATR-72s and connects 14 destinations including some under the Centre’s regional connectivity scheme UDAN. “Jet Airways continues to evaluate all possible alternatives to ensure optimum utilisation of its fleet,” a Jet Airways spokesperson said. “Owing to our quiet period, were unable to respond to further specific queries,” the spokesperson added.
Board to meet on Aug 27 to consider Q1 results
NEW DELHI: Jet Airways on Friday said a meeting of the board of directors will be held on August 27 to consider and approve the unaudited financial results for the first quarter ended June 30.
The board of directors of Jet Airways at its meeting held on August 9 had deferred the matter of consideration of the unaudited financial results for the June quarter. “The meeting of the board of directors of the company shall be held on 27 August 2018, inter alia, to approve the unaudited financial results for the first quarter ended 30 June 2018,” Jet Airways said in a regulatory filing on Friday.
The filing further noted that “the trading window for dealing in the securities of the company will remain closed till Wednesday, August 29 2018”.
Shares of the company were trading in the positive territory at Rs 307.05, up 2.20 per cent, over its previous closing price.