India’s Jet likely to lease three B777s to Etihad

Jet Airways will likely lease three of its B777-300ERs to 24 per cent shareholder, Etihad Airways when they return from Turkish Airlines in October this year.


India’s Jet likely to lease three B777s to Etihad


Jet Airways will likely lease three of its B777-300ERs to 24 per cent shareholder, Etihad Airways when they return from Turkish Airlines in October this year. Sources at the airline who spoke with India’s NDTV news said Jet had originally planned to resume using the widebody twinjets upon their return, but had since shelved those plans in favour of Etihad’s offer. “Jet Airways wanted these three Boeing planes to be put on its international network. However, Etihad requested Jet to lease out these planes to them as it wants them to deploy for its overseas network, which is under consideration,” the sources said. Etihad already leases two B777-300ERs from the Indian carrier.

Meanwhile, Jet Airways has outlined a three-year restructuring plan aimed at returning the carrier to profitability following a consolidated annual loss of INR41.3 billion (US$689 million) for the year ending 31 March 2014. The carrier has not reported an annual profit since 2007. The turnaround will involve the implementation of a new long-term network and fleet plan prepared for the airline by Seabury Consulting which is aimed at optimising Jet Airways domestic and international operations.

Naresh Goyal, the chairman of Jet Airways, said among the plan’s most urgent objectives is the establishment of a more solid financial footing. “We need to take stringent measures to ensure our success in this challenging and competitive aviation industry. There can be no short-term solutions. The changes required will take time to implement,” he said. “Our first priority on the journey to profitability will be to establish a more solid financial foundation for this airline.”