1247

Ian Sheppard/LONDON Paul Lewis/SINGAPORE

Jet Airways is close to signing a deal with ATR to lease eight new ATR 72 turboprops for an initial period of three years. This is the first move by the privately owned Indian domestic airline to form its own feeder fleet.

Raj Desai, Jet Airways' regional manager for Europe and North America, says the aircraft were originally destined for another operator, which cancelled the order. The first five turboprops are due to be delivered in September and will enter service in October. The remaining three are due to arrive next February.

The turboprops will be used to connect the country's tourist destinations with Jet's Boeing 737-operated routes from Delhi, Mumbai and Calcutta. Three will be based in Delhi, two in Ahmedbad, two in Mumbai and one in Chennai. ATR says the deal is "not confirmed yet" and declines to comment further.

Meanwhile, Jet says that a new Indian aviation policy banning the lease of foreign airline-owned aircraft has jeopardised the lease of five Boeing 737-400/500s from Malaysia Airlines. Three were delivered on 17 June and have since been grounded pending an appeal.

Jet hopes to resume their operation on 15 August if it secures an exemption based on the lease agreement signed before the new Indian Government policy came into effect on 11 June.

The policy was introduced partly to stop Singapore Airlines being involved in the proposed Tata Airlines start-up. Government opposition to foreign carrier involvement had already forced Gulf Air and Kuwait Airlines to divest a 40% holding in Jet earlier this year.

The carrier continues to take delivery of new 737s, having believed at one stage that it could fall foul of US sanctions because of recent Indian nuclear tests. So far, it has received four of six 737-400s and is preparing to take delivery of the first of four Next Generation 737-800s around 20 August.

"We are relieved that the Boeing loan is not subject to sanctions," says Desai, adding that Jet plans to grow its fleet from 19 to 35 aircraft by the end of March 1999.

Source: Flight International