It is pertinent to note that Boeing 737 Max will mainly come as replacement for the existing leased aircraft which will be returned on the expiry of their lease
Jet Airways, which has seen a dip in its market share in recent times, will now lease 11 old Boeing 737s in an incremental manner by the end of this year, before phasing them out with the arrival of 75 Boeing 737 Max aircraft from 2018 onwards.
"The 11 Boeing 737s are older planes and will be used for temporary basis till the induction of Boeing 737 Max," said a Jet Airways source aware of the development.
It is pertinent to note that Boeing 737 Max will mainly come as replacement for the existing leased aircraft which will be returned on the expiry of their lease.
However, a Jet Airways spokesperson refused to comment on the story, calling it speculative.
The airline, at present, has a fleet of 114 aircraft which includes a mix of wide-body Airbus A330s and Boeing 777s, narrow-body 737s and ATRs. It has 75 Boeing 737s Max on order which are due for delivery in 2018. Also, the airline is said to have deferred the induction of Boeing 787 aircraft which was scheduled to get delivered by the end of 2017.
Jet Airways claims that it does not want to rush into expensive asset purchase game but would rather develop market by way of leasing aircraft, code-shares and strategic partnerships.
The airline, in order to back its strategy, said that its code-share traffic has surged from 650,000 passengers in FY14 to 1.22 million in FY15.
Gaurang Shetty, whole time director of Jet Airways, during an interaction last year with DNA Money had said, "It's not that only if you place large plane orders that you are expanding. We keep scanning for all kind of opportunities like leasing of planes to increase our capacity. End of the day, it's the bottom-line which matters."
According to aviation experts, Jet Airways's market share has declined from over 21% earlier to just under 18% in 2016. The standalone profit declined 70% year on year in the third quarter on account of higher operational and other costs combined with increased competition.
Jet Airways's rivals, on the other hand, have not only placed large orders, but also want the planes inducted in reasonable number over a period of decade to capture the market share.
For example, low-frills airline IndiGo expects to add 18 aircraft to its fleet of 118 by the end of this fiscal year. The airline has placed an order for 430 fuel-efficient A320neo aircraft. Similarly, GoAir had doubled its A320neo order when it ordered 72 additional aircraft as part of its expansion plan. GoAir has plans to start international operations by early next year when it gets a total of 20 aircraft in its fleet. SpiceJet last month announced purchasing 205 aircraft from Boeing for Rs 1.5 lakh crore in order to increase its fleet fivefold.
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The airline, at present, has a fleet of 114 aircraft which includes a mix of wide-body Airbus A330s and Boeing 777s, narrow-body 737s and ATRs. It has 75 Boeing 737s Max on order which are due for delivery in 2018. Also, the airline is said to have deferred the induction of Boeing 787 aircraft which was scheduled to get delivered by the end of 2017.
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