Jet Airways Pays $13 Million to Take Ownership of Six Boeing Aircraft and Engines

Representative image. (Picture Source: Reuters)

Representative image. (Picture Source: Reuters)

The acquisition of the planes and engines has been funded from the proceeds of the sale of the Jet Airways' Bandra-Kurla headquarters in Mumbai.

  • PTI Mumbai
  • Last Updated: August 2, 2020, 2:10 PM IST
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Jet Airways, which is undergoing an insolvency resolution process, has acquired ownership of six Boeing aircraft along with engines, according to a regulatory filing. The acquisition of the planes and engines has been funded from the proceeds of sale of the airline's Bandra-Kurla headquarters in the city last month.

As per the filing, a buyout option was exercised whereby the company made payment of USD 13,000,000 to acquire ownership of six aircraft and engines. Jet Airways Resolution Professional Ashish Chhawchharia had received permission from the National Company Law Tribunal (NCLT) to sell the headquarters.

"One of the end-uses contemplated by the NCLT order is that the company would exercise its buyout option under six different aircraft leasing arrangements, originally entered into in the year 2007…," the filing said. It was to be done by way of making a "bullet payment of USD 13,000,000 to the parties holding an interest in the six aircraft and in turn acquire ownership over the aircraft," Chhawchhria said in the filing.

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The airline, which shuttered operations in April 2019, saw its loss widen to Rs 5,535.75 crore in the year ended March 2019. It had a loss of Rs 766.13 crore in 2017-18. These figures are for standalone comprehensive losses. In 2018-19, the airline's total income declined to Rs 23,314.11 crore from Rs 23,958.37 crore in the year-ago fiscal.

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