Jet Airways plans to add 75-100 narrow-body aircraft this year

Jet Airways is planning to add another 75-100 narrow-body aircraft to its existing fleet in order to expand its capacity. Earlier in 2016, the company had ordered 75 aircraft from Boeing. The new orders are in addition to previously placed order for 75 aircraft, said Vinay Dubey, chief executive officer of Jet Airways.

“In 2016 we had placed an order for 75 Boeing 737 Max aircraft and within the course of next few months, between now and the end of the year, we will be finalising an order for 75 to 100 additional narrow-body aircraft. We are in the final stages of deciding on the number of aircrafts for which to place the order,” he said.

Speaking to the reporters in Chennai, Dubey said, “We need to connect people with places and we think we can do it profitably with another 100 aircraft. We would deploy these aircraft on new as well as on existing routes. Today, we have about 90 narrow-body aircraft. And our view is that over the next five years, we are going to see the narrow-body and Jet Airways’ capacity to grow at the compound annual growth rate (CAGR) of about 10 per cent.”

The airline currently has a fleet size of around 114 aircraft, of which a majority is narrow body-aircraft. These aircraft have the ability to fly domestically and internationally. The company will continue to focus on both India as well as the international destinations, he added.

“We are finalising the details of what exactly we want to order in terms of the type aircraft, manufacturer etc. Stay tuned we will soon put out those details,” he said, refusing to comment on the investment required to buy the additional aircraft and the source of funding for the same.

Commenting on the debt, he said that the company is looking at reducing its debt over time. He said that there is no specific target on debt reduction plan which he could share at present.

According to a report by Centre for Asia Pacific Aviation India Pvt Ltd, in May, this year, the addition of 100 narrow-body aircraft by Jet Airways would take the total narrow body aircrafts in its portfolio to 175.

“Jet’s existing order of 75 737 Max aircraft, which are scheduled for delivery between 2018 ad 2023, will mostly be used for replacement. At present, half of its narrow-body fleet is aged and it is 9 years or older,” the report said. The new order of 100 aircraft is intended for expansion. According to the report, a large order for widebody aircraft will be necessary in the near term by the airline both for replacement of its existing fleet and for expansion.

The new non-stop flight from Chennai to Paris would complement the airlines’ existing direct daily operations from Mumbai to Paris. And Air France, KLM and Delta Air Lines will codeshare on the new flight which will operate for five days every week, excluding Tuesday and Wednesday.

The new service also enhances Jet Airways’ cargo capacity between Chennai and Paris by as much as 15 tons, enhancing trade in a variety of commodities.