Date:03/01/2007 URL: http://www.thehindubusinessline.com/2007/01/03/stories/2007010302210200.htm

Jet signs pact with Boeing for 10 aircraft

Our Bureau

Acquisition estimated to cost about $1.5 b

Looking overseas
In the next two to three years, the company will be expanding its focus on international network to connect India to key destinations, including the US, Canada, the UK, South Africa, Kenya, Mauritius, points in China and South East Asia, apart from some points in Europe like Rome, Zurich, Munich and Frankfurt.

Mumbai , Jan. 2

Jet Airways Ltd has concluded a purchase agreement with Boeing for the acquisition of 10 Boeing 787-8 series aircraft, as part of its plans to expand its international operations using wide-body aircraft. The aircraft are estimated to cost about $1.5 billion.

The aircraft are slated for deliveries between July 2011 and December 2012, subject to regulatory approvals, the company informed the Bombay Stock Exchange on Tuesday.

Significantly, under the agreement, the company also has the option to substitute other models of Boeing aircraft. The company begins taking delivery of the 10 B777-300ER and another 10 A330-200 aircraft, which were ordered in September and October last year respectively, in March-April 2007.

Expanding focus

A senior official of the airline told Business Line that the company had not yet finalised the means of funding the acquisition, as the aircraft will be delivered from July 2011.

In the next two to three years, the company will be expanding its focus on international network to connect India to key destinations, including the US, Canada, the UK, South Africa, Kenya, Mauritius, points in China and South East Asia, apart from some points in Europe like Rome, Zurich, Munich and Frankfurt. The company plans to invest about $2.5 billion over the next three years in new aircraft.

Currently, Jet Airways operates a fleet of 59 aircraft, including 47 next generation Boeing aircraft, three Airbus A340-300E aircraft, one Airbus A330-200 and eight ATR turboprop aircraft. It touches about 49 destinations spanning the length and breadth of the country and beyond, including Colombo, Kathmandu, Singapore, Kuala Lumpur and London.

International operations of Jet Airways accounted for 17 per cent of the revenue of the company in the second quarter of the current fiscal, with the commencement of two new routes — Amritsar-London-Heathrow (three times a week) and Delhi-Singapore (daily). The company has also renewed its focus on route-level partnerships with major carriers to provide seamless connectivity, like the agreement with Qantas on the Delhi-Singapore route.