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Sunday, 1 September 2013

Jet Airways may save Rs 320-350 cr per yr as Etihad Airways sub-leases A330 plane

Naresh Goyal-promoted Jet Airways and Abu Dhabi-based partner Etihad Airways are moving fast to monetise the synergies between the two airlines even as they await the Cabinet's clearance for their stake-sale deal.
After agreeing to have common interiors for their future Boeing 787 fleet, Etihad has now agreed to lease Jet's Airbus A330-300, which will help the Indian airline save $50-55 million (Rs 320 crore-350 crore) annually in leasing costs. The aircraft being sub-leased to Etihad was out of service for the last two quarters as Jet pulled out of some unprofitable routes.


Jet Airways has five more such planes parked in India and a similar sub-leasing deal is likely to be signed for at least two more planes with Etihad. “The overall benefit could be somewhere close to $100-150 million in leasing cost-savings per year if the deal for two more planes works out,” said a person in the know of the development. “There are two more airlines interested in sub-leasing them from Jet, and the deal should be finalised by the end of the second quarter.”
Read News In full 27/08/13 Debabrata Das/Financial Express

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