Jet Air May Order More Than 100 Planes at Paris Show, CAPA Says

Jet Airways (India) Ltd. (JETIN) may announce an order for more than 100 planes from Boeing Co. and Airbus SAS at the Paris Air Show next month, the CAPA Centre for Aviation said, after the carrier won investment from Etihad Airways PJSC.

Jet Air, the nation’s biggest listed carrier, may buy 50 737 MAX and about 10 777-300ER from Boeing and order 50 Airbus A320neos, the Sydney-based consulting company said in a report. The total value of the order is about $12 billion at list prices on the planemakers’ websites. Jet Air spokeswoman Ragini Chopra didn’t immediately respond to three calls to her mobile phone and a text message seeking comments on the report.

Jet Air, based in Mumbai, last month agreed to sell a 24 percent stake to Abu Dhabi’s Etihad after the Indian government eased aviation investment rules to help carriers access funds. Airlines in India have struggled to convert rising travel demand into profits because of fuel costs and a price war that forced Kingfisher Airlines Ltd. (KAIR) to halt operations.

“This represents the emergence of a new Jet Airways in the aftermath of the investment from Etihad,” CAPA said. “Until recently the carrier was unable to order aircraft because export credit agencies were concerned about its leverage.”

The Paris Air Show begins June 17.

IndiGo Order

The “longer term order” from Jet Air may be as high as 200 planes that will be announced in phases, according to the CAPA report. The airline currently has 109 planes. IndiGo, the nation’s biggest discount carrier, ordered 180 Airbus A320 jets in January 2011.

Shares of Jet Air rose as much as 1.4 percent to 599.40 rupees in Mumbai trading. The stock has gained about 6 percent this year. SpiceJet Ltd. (SJET), India’s only listed discount carrier, fell 11 percent in the period.

Jet Air, including unit, has posted annual losses in each of the five years through March 2012 and had total debt of 110 billion rupees at the end of that year, according to data compiled by Bloomberg. The country’s aviation industry reported $6.6 billion of losses in the past five years.

Competition is set to increase in India’s aviation market as AirAsia Bhd. (AIRA)’s local venture with Tata Group will start operations later this year.

To contact the reporter on this story: Karthikeyan Sundaram in New Delhi at kmeenakshisu@bloomberg.net

To contact the editor responsible for this story: Vipin V. Nair at vnair12@bloomberg.net

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