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Thursday, February 15, 2024

Indian airline to buy aircraft worth $12b from Boeing & Airbus

The news on Jet comes a month after billionaire investor Rakesh Jhunjhunwala-backed low cost Indian carrier Akasa Air placed a $9 billion order for 72 Boeing 737 MAX jets.

India’s Jet Airways is in talks with planemakers Boeing Co and Airbus SE for an order worth $12 billion, BloombergQuint reported on Thursday, citing Bloomberg News.

The airline’s new owners, UAE-based businessman Murari Lal Jalan and UK investment firm Kalrock Capital, told Bloomberg News that Jet could buy at least 100 narrowbody aircraft, BloombergQuint said on Twitter.

The group is set to invest about $200 million through equity and debt in Jet over the next six months, BloombergQuint said.

Jet, Boeing and Airbus did not immediately respond to requests for comment from Reuters.

The Jalan-Kalrock consortium’s resolution plan for Jet was approved by India’s bankruptcy court in June, with the airline poised for takeoff by the first quarter of 2022 as it gears up to resume domestic operations.

The debt-laden airline, once India’s biggest private carrier, stopped flying in April 2019 after running out of cash, leaving thousands without jobs.

Shares of the airline jumped as much as 3.7% to 85 rupees on Thursday and were trading 2.4% higher at 0740 GMT.

Read more: Indian airline hits a wall: ‘Ba Kamal Log, La Jawab Service’

The news on Jet comes a month after billionaire investor Rakesh Jhunjhunwala-backed low cost Indian carrier Akasa Air placed a $9 billion order for 72 Boeing 737 MAX jets.

Reuters with additional input by GVS News Desk