Jet Airways (Mumbai International) has reportedly entered into negotiations with Oman Air (WY, Muscat) regarding the wet-lease of three A330s and an unspecified number of B737s to the Omani carrier, the Financial Express has written. The Indian carrier called the report "baseless and incorrect".
The wet-lease could provide much-needed financial support to the debt-ridden Indian carrier. Jet Airways launched a major cost-cutting drive in late August 2018 after reports surfaced that it was facing an imminent liquidity crunch.
According to the ch-aviation fleets module, Jet Airways currently operates four A330-200s and four A330-300s. It is unclear which of the types could be wet-leased to Oman Air. The Indian airline also operates two B737-700s, sixty-eight B737-800s, two B737-900s, and four B737-8s.
The Omani carrier, for its part, already operates four A330-200s and six A330-300s. Its long-haul fleet also includes four B787-8s and four B787-9s, while its narrowbody equipment consists of twenty-one B737-800s, five B737-900(ER)s, and three B737-8s.
Jet Airways Deputy CEO and CFO Amit Agarwal also said that Jet Airways would be looking at sale and leaseback transactions. The carrier currently owns sixteen of its aircraft, including three A330-200s, two B737-800s, one B737-900, and ten B777-300(ER)s.
"Even on a conservative basis the value of these aircraft would not be roughly less than USD750 million to USD800 million and the debt outstanding is about INR19 billion rupees or nearly USD260 million. So, clearly, there is a large equity sitting there," Agarwal said.
The carrier is also proceeding with the planned sale of a stake in its loyalty programme Jet Privilege. Jet Airways appointed Moelis & Co as a transaction manager and is reportedly close to finalising negotiations with either TPG Capital or Blackstone.
Etihad Airways currently owns 50.1% of Jet Privilege and 24% of the airline itself.
Moelis & Co managed the August sale of the Aeroplan loyalty programme by Aimia to Air Canada.
