INSUBCONTINENT EXCLUSIVE:
cash-strapped Jet Airways being forced to ground planes, and the low-cost carrier is in talks with lessors to lease some of those aircraft,
a person with direct knowledge of the matter told news agency Reuters.Shares of SpiceJet rose as much as 7.2 per cent on Wednesday in their
biggest percentage gain since December 18 as investors bet the airline could take advantage of Jet Airways' woes.SpiceJet last week was
forced to ground its 12 Boeing Co 737 MAX 8 planes by the aviation watchdog, following safety concerns after the Ethiopian Airlines plane
crash that killed 157 people.SpiceJet and Jet Airways are the only carriers in the country that operate this type of aircraft and have a
total of about 400 on order
The airlines also operate the previous model, the 737-800 among other Boeing planes.The 737-800 makes up the majority of the Jet Airways
fleet, and the airline is now operating only 41 aircraft, the Directorate General of Civil Aviation (DGCA) said on Tuesday.That means around
two-thirds of its fleet is grounded for non-payment to lessors, maintenance or other reasons."Lessors are panicking as they haven't been
paid and if Jet goes for insolvency, their planes will be stuck in India, so many of them are chasing SpiceJet," said the person quoted
earlier.The person said SpiceJet needs at least twelve 737s to cover the grounded MAX planes and it is negotiating for more
Jet Airways pilots are also queuing up to join the budget airline.Jet Airways' lessors have offered 50 aircraft to SpiceJet, according to a
report by news wire IANS.SpiceJet and Jet Airways did not immediately respond to a request for comment.Jet Airways shares dropped about 7
per cent on Wednesday as its financial crisis deepened, with the government calling for an emergency meeting and pilots threatening to go on
strike over unpaid salaries.The government has asked state-run banks to rescue Jet Airways without pushing it into bankruptcy, two people
within the administration have told Reuters, as Prime Minister Narendra Modi seeks to avert thousands of job losses weeks before a general
election.The 25-year-old airline has defaulted on loans after racking up over $1 billion in debt, and owes money to banks, suppliers, pilots
and lessors - some of whom have started terminating their lease deals with the carrier.This has forced Jet Airways to cancel hundreds of
flights, leaving passengers stranded and angry
The number of Jet Airways flights has fallen by 80 per cent from a year ago, according to the DGCA.Get the latest election news, live
updates and election schedule for Lok Sabha Elections 2019 on TheIndianSubcontinent.com/elections
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