Saturday, August 18, 2018

Regional Airlines Player TruJet in Talks with Jet Airways for ATRs

Beleaguered Jet Airways is in an advanced stage of discussions with TruJet to sub-lease up to seven of its ATR planes to the regional airline as it seeks to reduce costs and mop up additional revenues, according to an industry source.

These planes are likely to be sub-leased with complete crew, maintenance and insurance.

Currently, the Naresh Goyal-promoted full service carrier has 15 ATRs in its fleet. TruJet, which started operations in July 2015 has an all ATR fleet.

The deal may be stitched this month, the source privy to the development said.

Jet Airways had attempted to phase out these regional jets in the past as well.

“Both Jet Airways and TruJet are in an advanced stage of negotiations on the ATR deal. As per the on-going discussions, TruJet will initially lease seven ATRs from Jet Airways,” the source told PTI.

While TruJet confirmed it is in discussions with Jet Airways, the latter said that “it continues to evaluate all possible alternatives”.

Partially-owned by Gulf carrier Etihad, Jet Airways has been facing turbulence since the beginning of this year, having reported a massive loss of over Rs 1,000 crore in March quarter.

The source said that the sub-lease period was likely to be for five years under a wet lease arrangement. “If the deal gets through, TruJet could opt for more such planes from the airline,” the source added.

A wet lease is an arrangement under which one airline provides an aircraft, its complete crew, maintenance and insurance.

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