Jet to set up simulator, hangar facilities

Jet Airways, the country's largest private sector airline, has designed an ambitious Rs 180 crore investment plan.

The plan envisages setting up of an additional simulator to train its pilots to fly the next generation Boeing aircraft such as 737-800 and 737-900s, a new hanger at the Mumbai airport and an engineering training centre besides an integrated training centre for its ground and inflight crew.

The airline, which has recently announced a $500 million (around Rs 2,250 crore) initial public offer (IPO) to fund its mega expansion plans, said in its draft prospectus, "We need an additional simulator for training our pilots to fly Boeing's new generation aircraft. We believe the expected cost will be $15 million (Rs 69 crore), which we expect to finance from the net proceeds of the fresh issue."

The new simulator is expected to be commissioned in the next financial year.

It plans to invest over Rs 46 crore from the IPO proceeds to purchase land and construct the new training centre and equip it with necessary teaching aids.

It proposes to invest another Rs 69 crore in constructing a new hanger with related workshops and training facilities at the Mumbai airport"" its primary hub for domestic operations.

The new hanger, the company said, will enable it to carry out scheduled and unscheduled maintenance tasks, including grade C and in due course grade D checks. It is likely to bring in substantial savings for the airline in its maintenance cost and reduce usage of third party hanger and support facilities.

The carrier, having charted out plans to spread wings abroad, is expecting seven new aircraft to join its fleet in the first half of 2005 and 10 more by the end of 2006.

Its existing 42 aircraft strong fleet consists of 14 Boeing 737-800s, 12 B737-700s, six 737-400s, 2 B737-900s and eight ATR 72-500s. The airline's first simulator was commissioned for training facilities in June 2001 at Mumbai. It is the only private sector carrier in India to have its own simulator.