In a surprise move, Jet Airways has re-acquired six of its 777-300ERs from lessor Fleet Ireland. The airline paid $13 million to take ownership of the six aircraft, which were impounded due to unpaid fees. With the bidding process delayed once again, it’s unclear what Jet will do with these planes.
The immediate aftermath of Jet Airways’ grounding saw lessors from around the globe quickly move in to take back their aircraft. However, a small number of aircraft were still owned by Jet or were on a financial lease (wherein the airline gets to take ownership of the plane once payments are made).
In late July, Jet Airways has finally managed to raise enough funds to take possession of financial leased aircraft. The airline recently sold off a number of its assets, such as its office in Mumbai, to raise funds. Jet has used these funds to re-acquire the six aircraft, according to The Hindu BusinessLine.
Jet Airways made a $13 million “bullet payment,” a one-time payment to clear all dues, to Fleet Ireland. With this, it received the ownership of the six 777s as well as the plane’s engines, which had been removed. According to Live From A Lounge, these planes had few outstanding payments, allowing Jet to take back all six with a relatively small payment.
Jet Airways :
Will it take to the skies again? Soon?
After clearing lease dues for six of its widebody aircraft -777- engineering work in full swing on Jet’s widebody aircraft at the @CSMIA_Official .
Pics from a source pic.twitter.com/7RpYgn6KbV
— manisha singhal (@manishasinghal) July 31, 2020
Nowhere to fly
While it is a positive sign that Jet Airways is taking back aircraft, it’s unclear what the airline can do with these planes. All of Jet’s remaining planes have been sitting on the ground for over a year, with possibly little maintenance. This means it could cost millions to make the aircraft airworthy once again.
Until Jet Airways finds a buyer or is liquidated, it’s unlikely the 777s are going anywhere. In May, the carrier offered its 777s for repatriation missions, but it quickly became clear this plan was unfeasible.
Bidding process stalls
Jet Airways’ end-goal has always been to find a buyer for the airline. If the task seemed difficult before, it has become herculean in the current crisis. The airline has received two binding bids, and the process was planned to wrap up by August. However, the creditors have now said there is no firm deadline for when the process with the finish due to the current crisis.
The future of Jet Airways remains up in the air, just as it did a year ago. Liquidating the airline would cost creditors billions, which explains their repeated push to find a buyer. However, looking at the situation, it’s unlikely that any bids will succeed.
What do you think about Jet Airways’ chances? Let us know in the comments!