Jet Airways CFO Amit Agarwal. Jet Airways also estimates the sale of 10 other aircraft owned by it. Photo: Aniruddha Chowdhury / Mint
Mumbai: Jet Airways (India) Ltd plans to sell six Boeing 777 buses, the CEO of the top company, saying that a cargoed airline attempts to dismantle most of the aircraft-related debt of about ₹ 1,800 crorea. "The airline has identified six Boeing 777 ships that it sells to leaseholders when selling and leasing and using the proceeds to pay off most of the aircraft discount," Jet Airways's CFO Amit Agarwal told reporters on Tuesday's post-print call.
Jet Airways' net debt was ₹ 8,052 crorea at the end of the quarter, which ended on 30 September 2018. Its net debt at the end of June was 7 364 crude. Although 60 percent of the airline's debt is dollar-denominated, the aircraft's debt is ₹ 1,800 crorea.
Jet Airways has 124 aircraft based on its website. Of this, it owns 16 aircraft, mostly wide body levels, while the remainder is the sale and rental of lessors.
Sale and leaseback are an event where the owner sells the aircraft and takes it back from the lease to the buyer. Such a transaction typically removes the aircraft and related debt from the balance sheet of the operator.
Jet Airways also funds its sales and leaseback mechanism through the purchase of its 225 Boeing 737 Max. In addition, it estimates 10 of its 10 owned aircraft sales.
The airline will also remove 2025 from the old Boeing 737 aircraft by 2025 and will introduce 15 new Boeing 737 Max aircraft in taxation 2020, Agarwal said.
In 2015, Jet Airways had ordered 75 Boeing 737 Max orders. It ordered another 75 new this year. In June, the Regulatory Notice had said it would acquire 75 more, taking the total of the Boeing 737 Max fleet to 225.
The airline has already delivered five Boeing 737 Max cranes in the first half of current taxation and will supply another six such aircraft before the end of the tax.
The long-term growth forecast of the second largest airline increases its capacity by 8 to 10 percent per year, behind Boeing 737 Max.
Further, Jet Airways rationalizes its operations on unprofitable routes, airline CEO Vinay Dube stated that the airline expects prices to rise in the short term.
For the three months ended September 30, 2001, Naresh Goyal, the leading Jet Airways, declined ₹ 1,297.46 crorea, with the exception of units, for the third consecutive loss. The net profit was ₹ 49.63 crorea over the same period a year earlier.
The airline, which had 14.2 percent of the domestic aviation market in September, urgently needs to raise money to stop fuel prices sharply higher, and the slump has weakened economic health.
Brent crude oil has grown 13.71% last year, while the ruble has weakened 9.97% against the dollar.
Mint on November 13, announced that the Tata Group will make Jet Airways due diligence because the largest group in the country will find out how to buy a majority stake in an on-air carrier. Jet Airways, however, called the news story "speculative."
Agarwal said that even though the company did not comment on speculation, the company announced that in the future, "something will happen".
Jet Airways has nominated an investment bank to help raise funds by selling its stake in Jet Privilege Pvt's regular flight application. Ltd. and a consultant to work to improve efficiency, Agarwal said.
Jet Airways shares rose 5.21% on Tuesday, Rs254.65 in BSE, while the comparison with Sensex rose from 0.95% to 35.144,49 points.