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Jet Airways to buy 30 aircraft
June 14, 2005 16:40 IST
Last Updated: June 14, 2005 17:24 IST
In a path-breaking expansion bid, Jet Airways on Tuesday signed a deal with Airbus to buy ten A 330-200 and A 330-300 aircraft, with options to acquire ten more aircraft.
The company also signed a deal with Boeing for 20 aircraft. Both the agreements were signed by the premier private airliner at the Paris Air Show. The airline also informed the Bombay Stock Exchange about the new deals to expand its fleet capacity.
With the induction of these 30 aircraft, Jet Airways would become one of the largest carriers in India. At the moment, the private carrier has 36 Boeing 737s, three A-340s and eight ATR 72-500s.
Observing that the airline had received "most encouraging response" on the long-haul Mumbai-London Heathrow route being serviced by newly-leased three A-340-300E aircraft, Naresh Goyal, chairman, Jet Airways said the A-330s, which are to be inducted following this agreement, had the versatility to be economical on short, medium and long haul services.
"We plan to use these (Airbus) aircraft on a mix of domestic, regional and international flights", Goyal said. He said the deliveries of Boeing 777s would begin from later part of next year and the planes would be used for non-stop flights between India and the US.
Meanwhile, the airline informed the BSE that it intended to commence flights to the United States and some other countries and increase the frequency of its operations to the UK.
It also planned to increase its flights in the domestic sector, the BSE was informed. The Airbus and Boeing aircraft would be delivered between 2006 and 2009 and entail significant capital expenditure in stages over the next four years, the Jet Airways said.
"It is envisaged that the capital expenditure would be funded through judicious mix of internal accruals, commercial debt and export credit agency financing", it told the BSE.
The company had set up an aircraft acquisition committee to initiate discussions with aircraft manufacturers regarding the outlays, delivery schedules, payment terms and engagement of advisors.The acquisition would be subject to all requisite corporate, legal governmental and regulatory approvals including the approval of the shareholders of the company, the airline said.