Air India and Jet Airways to Lease 35 Aircraft from Airbus at $5 Billion

Strategic Insights -

Air India and Jet Airways will be leasing 35 planes from European aircraft manufacturing major Airbus, with the deal valued at $5 billion. State carrier Air India has decided to rent 10 A330 planes and 15 A320s, while Jet Airways has approved the lease of 10 A330s. The 25 planes to be leased by Air India come at a value of $3.1 billion, while the others to be leased by Jet Airways will cost $1.9 billion.

Key Takeaways:

  • Air India will lease 25 aircraft (10 A330s and 15 A320s) from Airbus at a value of $3.1 billion.
  • Jet Airways will lease 10 A330s from Airbus at a value of $1.9 billion.
  • The total deal value is $5 billion, with Air India and Jet Airways paying $3.1 billion and $1.9 billion, respectively.
  • The aircraft are needed to cater to increased passenger traffic following a recent recovery in the aviation sector.
  • SpiceJet has announced plans to spend $900 million on acquiring 30 Nextgen turboprop aircraft from Bombardier Inc.
  • IndiGo, a competitor to Air India and Jet Airways, has received government approval to purchase 150 planes.
  • Air India posted a net profit of INR 10 crore for the quarter ending September, while Jet Airways does not have mentioned financial information in the article.

Statistics:

  • $5 billion: The total value of the aircraft lease deal between Airbus and Air India and Jet Airways.
  • $3.1 billion: The value of the 25 aircraft to be leased by Air India.
  • $1.9 billion: The value of the 10 A330s to be leased by Jet Airways.
  • 10 A330s: The number of flights to be leased by Air India.
  • 15 A320s: The number of flights to be leased by Air India.
  • 25 planes: The total number of aircraft to be leased by Air India.
  • 10 A330s: The number of flights to be leased by Jet Airways.
  • $900 million: The amount SpiceJet plans to spend on acquiring 30 Nextgen turboprop aircraft.
  • 30: The number of Nextgen turboprop aircraft SpiceJet plans to acquire.
  • $4,300 crore: The rupee equivalent of SpiceJet's planned investment.
  • INR 10 crore: Air India's net profit for the quarter ending September.
  • INR 101 crore: Air India's net loss for the corresponding period last year.
  • 150: The number of planes IndiGo has received government approval to purchase.

Sources:

  • Airbus statement (no date mentioned)
  • Euclid Infotech Pvt. Ltd. (2010)
  • Contify.com (no date mentioned)