New Delhi: Private airline Jet Airways has converted the wet lease of its aircraft -- where airplanes are given along with the crew and maintenance obligations -- to Turkish Airlines into dry lease, which comes without staff and other frills, and is holding talks with Gulf Air and Oman Air for similar conversion.
The Naresh-Goyal promoted airline had given on wet-lease two Airbus 330 to Oman Air and four Boeing 777 planes to Gulf Air earlier this year.
While the lease term with Gulf Air will expire in October this year, the agreement with Oman Air continues till October-November.
“We have converted the lease with Turkish Airlines effective last month. Three Boeing 777s have been delivered to it on dry lease and another one would be delivered to it soon,” Jet Airways executive director Saroj Datta said.
Conversion of wet lease into dry lease would result in revenues of Jet Airways going down by almost half on these airplanes.
The revenue from each of such aircraft per month is in the range of $2 million which goes down to about $1 million when converted into dry lease, according to analysts.
Datta declined to give the reduction in revenues as a result of conversion saying “the costs involved also goes down”.
Jet Airways CEO Wolfgang Prock-Schauer recently told investors, “In terms of revenue, when you convert wet lease to a dry lease, rough about 40-45% reduction is estimated”.
The company had given out aircraft as part of its network and airplane-lease restructuring exercise and has started many of its international operations deploying narrow-body jets in place of wide-body.