Ministry nod for Jet Airways to wet lease Malaysian aircraft

The ministry has made it clear that the term of the lease should last only 8 weeks or for the period until the grounded aircraft is repaired and fit for operations, whichever is earlier.

The approval comes at a time when the government is still trying to interpret the new guidelines which prohibit leasing from foreign airlines or from many other agencyrelated to an airline company. Jet had earlier proposed to sub-lease the aircraft from Malaysian airlines through an Australian bank. While the Directorate General of Civil Aviation (DGCA) has already declared it violative of the guidelines, the ministry is yet to take a view.

The ministry’s letter does not take into account the fact the grounded aircraft too has been leased from Malaysian Airlines and might have to be returned once it is repaired.

Ministry officials said the decision had been taken to prevent any inconvenience to the public due to a disruption in Jet Airways’ services.

According to officials, Jet has already begun working on ways to reorganise its schedules to suit its new reduced fleet size. The airline might be forced to cut down operations on some sectors until it is able to replenish its fleet. Jet Airways officials were not available for comment on the issue.

The airline company, which has been trying to induct five new aircraft was caught on the wrong foot when the governmentannounced fresh guidelines on June 11, forbidding leasing of aircraft from existing foreign airlines. The ministry has till July 15 by which to clarify what airlines will have to do to existing aircraft leased from foreign airlines.