Page 33 - AAA JANUARY - FEBRUARY 2014 Online Magazine

INDIA SECTION

Air India to sell B777, B787s
National carrier Air India will sell five confirmed, the official says. Etihad has immediately lease the same back under
long-haul Boeing 777 aircraft and seven already announced plans to deploy an operating lease for a period of 12
additional Boeing 787 jets as part of its the aircraft on long-haul routes June years with an option to extend,” a request
initiative to reduce costs and optimize onwards although Air India and Etihad for tender document says.
revenue. “Air India has received approval have not yet disclosed the financial “The company will pay all the loans
from India’s Cabinet Committee on details of the agreement. outstanding against these aircraft, which
Economic Affairs (CCEA) to sell five In a separate move, Air India has also will reduce the interest and loan liability by
wide-bodied Boeing 777 aircraft to Abu invited bids for the sale and leaseback US$60 million a year besides US$40 million
Dhabi-based Etihad Airways,” a senior of seven Boeing 787 aircraft in addition by savings a year by way of maintenance
government official says. The two to the seven already sold and leased costs,” a senior airline official says.
airlines had signed a Letter of Intent back earlier this year, according to the Air India currently runs 11 Boeing 787
in October for an undisclosed amount, company’s tender document reviewed aircraft and is expected to take delivery
which was later approved by Air India’s by AA&A. The airline will sell the seven of three more in February from Boeing,
board following which the deal was 787 aircraft to the “relevant lessor and taking the total fleet to 14.

Jet Airways ties up with Turkish Airlines
Jet Airways (India) Ltd has entered into Ravishankar Gopalakrishnan said. Debt
a fresh aircraft leasing arrangement was reported as US$1.9 billion as on
with Turkish Airlines for three Airbus September 30, 2013. For Q2, Jet Airways
330-200 wide body jets. The company, had reported a net loss of 9 billion
which is 24% owned by Etihad Airways, rupees. Of this, 1.23 billion rupees in
will lease out three of its idle A330s to losses were related to aircraft on ground.
the Turkish carrier for six years. At the Earlier, Jet was close to leasing out five
end of Q2, Jet grounded five A330s and aircraft to Kuwait Airlines, but the deal
initiated discussions with players for fell apart with the Kuwait government
both an outright sale and long-term suspending the flag carrier’s chairman,
lease arrangements. Sami Al-Nesif. Turkish Airlines and
If the company is successful in an Jet Airways have a long history of
outright sale of these aircraft, its debt commercial arrangements, as in 2010
portfolio will shrink by US$200 million, Turkish inked an agreement with Jet to
the airline’s chief financial officer take three Boeing 777s on lease.

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