FLY Leasing, the lessor for the beleaguered airline Jet Airways has said that it will take back the grounded aircraft and redeploy them if the latter is unable to get its debt restructuring plan approved with the SBI.
FLY Leasing, the lessor for the beleaguered airline Jet Airways has said that it will take back the three grounded aircraft and redeploy them if the latter is unable to get its debt restructuring plan approved with the State Bank of India. Ireland headquartered aircraft leasing investment company Fly Leasing had grounded three aircraft, given to Jet Airways on lease, on Thursday.
The airline on Thursday had said that it is due to the failure to make payments, Reuters reported.
“…we have 3 fairly young (Boeing 737-)800s there that represent about 3% of our revenue at FLY. We’ve been a long-time lessor to Jet and to Etihad, and we’re a big believer in the Indian aviation market. I mean you look at the metrics of that market, it’s phenomenal, so any major lessor has to play in that marketplace, it’s — long-term it’s the place to be. So we have grounded our aircraft, we have control over our aircraft but we have not terminated the leases, and we were waiting for the airline to approve all it’s restructuring with the State Bank of India. And if that goes through at the end of the month, obviously, we will stay with Jet. If they can’t get that done then we’ll take our aircraft back and redeploy them,” Steve Zissis, President, CEO, BBAM said during the FLY Leasing’s Q4 2018 earnings conference call. The transcript of the call is available on seekingalpha.com.
FLY Leasing is the subsidiary of the US-based aircraft leasing and management company BBAM.
The airline has over 40 per cent of its total fleet of 123 aircraft grounded following its inability to pay for lease rentals and lack of spares, a senior official at the Directorate General of Civil Aviation (DGCA) said on Thursday, the Financial Express reported.
DGCA director general BS Bhullar said that the airline’s flight schedule is being monitored on a monthly basis as its fleet count has been reduced to 70.
“Jet’s financial situation is well known. We are in constant touch with the airlines. We have told them to inform passengers about cancellations well in advance so that inconvenience is minimised,” Bhullar told reporters. He added that forward sales would not be banned as it can create a panic in the industry.