Aviation

Boeing to return $200 million to crisis-ridden Jet Airways, says report

Updated : August 28, 2018 08:26 AM IST

The amount paid was the pre-delivery amount the airlines are required to pay for making an order.

By extending a helping hand to Jet, Boeing may have sealed a long-term relationship with the carrier.

The funding by Boeing as an industry practice is a win-win for both.

Boeing to return $200 million to crisis-ridden Jet Airways, says report

US aircraft manufacturer Boeing is likely returning around $200 million to Jet Airways which was paid by the airline to procure 75 Boeing 737 Max, Financial Express reported.

The amount paid was the pre-delivery amount the airlines are required to pay making an order. The order was placed in 2015 and was followed up with two more tranches of the order for the same aircraft, totaling it up to 225 aircraft, said the FE report on Tuesday.

By extending a helping hand to Jet, Boeing may have sealed a long-term relationship with the carrier, sources told the paper.

“Jet Airways remains committed to turn around its business for which it continuously evaluates various funding options to meet its liquidity requirements on priority," a Jet Airways spokesperson was quoted by the paper.

Mark Martin, founder and CEO at UAE-based Martin Consulting, told the paper that the funding by Boeing as an industry practice was a win-win for both, the manufacturer who is able to sell more planes and the buyer, in this case Jet.

Disclosure: Boeing is one of the launch partners of CNBCTV18.com.

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