A special offshore company in the Cayman Islands has been set up by growing Indian domestic airline Jet Airways to handle the finance for the 10 Boeing 737s it has on order. The $325 million hire purchase deal, largely underwritten by the US Exim export credit bank, is being arranged by ANZ Grindlays.
The new company will retain ownership of the aircraft for the initial three year lease term, with Jet Airways paying the US dollar leases via the company. Sources say that the Exim bank is covering 85% of the value, with the rest coming from commercial banks.
The acquisition, agreed last year, for four 737-400 and six 737-800s, was the first direct deal between a private Indian airline and a manufacturer. With the first two of the 737-400s and another two dry-leased aircraft due to arrive over the next couple of months, Jet's fleet will rise to 22. That is the maximum allowed for private Indian carriers and further growth will require special government permission.
Source: Flight International
