Following its dismal second quarter results for fiscal year 2014, Jet Airways plans to pare back its fleet size either through the sale or lease of widebody aircraft.
The carrier revealed that it planned to lease out aircraft on 23 October when it released its results for the quarter ended 30 September.
“The lean season and economic slowdown resulted in a drop in yields,” said the carrier. “A depreciating currency, high fuel prices, and increases in airport charges in select Indian airports have driven cost pressures, resulting in losses. There were also instances of aircraft on the ground, the impact of which was approximately [Rs1.2 billion]. These aircraft will be leased out in the next few months.”
In a response to an email from Flightglobal Pro seeking clarity about its fleet plans, a Jet spokesman said that it hopes to either dry lease or sell five Airbus A330-200 aircraft, and that it is proposing the lease of two Boeing 777-300ERs to Etihad for four months starting in December 2013.
It says that it is working on the sale of the five A330-200s to two parties, with the deal now “being finalised.” It is also working on proposals to dry lease these five aircraft. Whichever deal comes through first – either the dry leases or sales – will be finalised, says the spokesman.
In addition, the carrier is wet leasing three Boeing 777-300ERs to Turkish Airlines until June 2014, and has dry leased three A330-200s to Etihad. The three Etihad leases have different expiry dates: Q1 2014, Q2 2015, and Q2 2016.
According to Flightglobal’s Ascend Online Fleets database, Jet operates six 777-300ERs, all of which are between 5-6 years old. It also operates 4 A330-300s and 7 A330-200s, of which Ascend shows two as being in storage.
Jet has orders for 51 aircraft. These include 10 787-9s set to delivered in 2016-2017, and five A330-200s for delivery in 2015-2016. The balance of its orderbook comprises 36 737-800 aircraft.
The carrier’s second quarter net loss was almost Rs9 billion ($140 million) for the three months to 30 September. The carrier generated nearly Rs42 billion in revenues for the quarter, a fractional increase on the same period last year.