Jet Airways, India's largest airline, is likely to sell and lease back part of the 40 aircraft that it owns to trim down its debt by raising up to $300 million over the next six months.
The airline will be able to save on capex by selling and leasing back the aircraft, as in this process airlines sell planes to a leasing firm, which then leases aircraft back to the airline. It is a common process that airlines follow during a slowdown.
Jet Airways is going for this fund raising plan amid comments by its auditors that raising money was essential if Jet's accounts are to be prepared on a going concern basis in the future.
