Page 18 - AAA NOVEMBER - DECEMBER 2018 Online Magazine

The airline hopes to save approximately US$270 million over Fleet Rationalisation
the next two years by trimming maintenance costs, selling and et Airways’ is a large Boeing operator
distribution costs, fuel costs and optimisation, debt and interest with a fleet comprising of 737 Max 8,
cost reduction and enhancing crew and manpower productivity. Next Generation 737s and 777-300
JERs. The airline has 225 737 MAXs
“The opportunity is staggering because of our highly on order and company officials are happy
underpenetrated aviation market with a fast-growing with the performance of the aircraft, “We are
economy and a growing population. But the chal- already seeing fuel efficiencies in our 737
lenges are equally staggering, as airlines battle for MAX Aircraft. Along with extremely posi-
market share, not profitability, by dumping capacity tive feedback from guests about the overall
into a market at unprecedented levels, enabled by flight experience of the MAX, we have so far
fare regimes that are unsustainable. You are seeing inducted 5 out of the 11 Max aircraft sched-
this clearly play out as each of the airlines report uled to be delivered to us this financial year,”
results for the second fiscal quarter,” they say. Six more 737 MAX 8s are slated to
Jet Airways CEO Vinay Dube be added by end of March 2019, taking the
total fleet size of Boeing’s newest single-aisle
jetliner with the airline to 11. Company officials
say, that 15 more of the type will be added
in fiscal ’20.

Jet Airways had planned to use the new air-
craft to phase out its existing fleet of 75 737
NGs aircraft by 2025; as the older aircraft
will be returned to the lessor on expiry of
leases and the fresh aircraft will either go for
replacement or capacity as it seeks to fend
off the ferocious competition from home-
grown LCCs - IndiGo, SpiceJet and Go Air.
The B737 MAX will also enhance Jet Airways’
operational reliability and also reduce its sub-
fleet complexity while reducing costs. The
carrier’s excess ATR aircraft will also be put
on wet lease. In a further attempt to pare
down its debt by approximately US$240 mil-
lion, Jet Airways has put six of its B777s for
sale and leaseback, while it will continue to
own the remaining 10 of the type. Jet Airways
currently has a fleet of 124 aircraft, which
also includes Airbus A330-200 / 300 and
ATR 72-500 / 600s.

18 | November/December 2018 www.GBP.com.sg/AAA