Mumbai, Oct 21: Jet Airways has initiated negotiations with ANZ Grindlays Bank and Standard Chartered Bank to fund the proposed acquisition of 10 more next generation Boeing aircraft at a cost of $500 million. The acquisition drive comes close on the heels of the airline taking possession of a B737-400 aircraft as part of an agreement signed with Boeing Commercial airplane company in December 1996 for the purchase of 10 aircraft.``We have already placed orders with Boeing for the acquisition of 10 next generation B 737 aircraft. Negotiations are on with banks like Standard Chartered Bank and ANZ Grindlays to finance the $500 million purchase plan,'' said Jet Airways acting CEO Saroj Datta.
Jet Airways has approached the US authorities for an US Exim Bank guarantee which it had received in 1996 before finalising the financing arrangement with ANZ Grindlays Bank and Barclays Bank.
The airline is planning to take the delivery of 10 aircraft between 2001 and 2003 after getting the necessary approvals from the Government. Jet Airways currently has a fleet strength of 25 aircraft consisting of three B737-500s, 12 B 737-400s and four B737-700s and six B737-800s.
It is believed that the airline has drawn up a comprehensive plan to enhance its presence in the smaller routes.
This is being done to make maximum use of the increasing traffic between places like Bangalore-Kochi and Bangalore-Hyderabad.
Jet Airways has already launched commercial operations with two ATR 72-500 aircraft with effect from October 15, 1999. The ATR aircraft has been acquired by the airline under an operating lease through Aircraft International Renting Ltd.
Though it has entered into an agreement for the lease of five aircraft, so far only two have been delivered.
The third aircraft is scheduled to be delivered in early November 1999.With the two aircraft already in operation, the airline has added four more stations to its network and provided links between seven city pairs. After the induction of three more ATR 72-500 by March 2000, Jet Airways will add four more new stations to its network and link eight additional city pairs.It is believed that the airline is gearing up to change the profile to aggressively take on the competition in the next millennium. An indication to this effect is already visible with the airline discarding its traditional uniform and opting for a new one.
The fare war which has shattered the domestic aviation industry has finally come to an end with Jet Airways and its competitor Indian Airlines deciding to pull back the fares in the Delhi-Mumbai sectors to original levels. Though Sahara Airways is yet to reduce the fares, another war is highly unlikely with the Jet Airways chairman Naresh Goyal expressing his intention to continue with the present fares, aviation analysts said.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.