One of Jet Airways’ long-grounded Boeing 777-300ER aircraft has finally left Mumbai airport after remaining parked for more than seven years, marking a significant milestone in the airline’s liquidation process and highlighting the growing value of ageing widebody aircraft in the global leasing and cargo conversion market.
The aircraft, previously registered as VT-JEM under Jet Airways and now re-registered as 2-TJEM on Guernsey’s aircraft registry, departed Mumbai on Monday for Tel Aviv, where it will undergo conversion into a dedicated freighter.
For years, the aircraft had become a familiar sight at Mumbai airport, symbolising the collapse of one of India’s largest private airlines after Jet Airways suspended operations in 2019. Parked alongside other grounded aircraft, the Boeing 777 remained idle while legal proceedings and ownership disputes delayed its future.
Part of wider aircraft asset sale
The aircraft is one of three Boeing 777-300ERs being acquired by Ace Aviation, a Malta-based subsidiary of Israel’s Challenge Group, which operates international cargo airlines. The three aircraft have been purchased for a combined value of US$46 million (approximately ₹418 crore) as part of Jet Airways’ ongoing liquidation process.
The National Company Law Tribunal (NCLT) approved the sale of the three aircraft, including VT-JEM, VT-JES, and VT-JEV, allowing the transaction to move forward after several years of uncertainty.
Legal challenges
Although Ace Aviation had expressed interest in acquiring the aircraft as early as 2022 and paid a deposit under a signed Letter of Intent, the transaction was delayed by a series of legal disputes.
One of the major hurdles involved claims by Mumbai International Airport Limited (MIAL), which sought recovery of aircraft parking charges and other airport dues accumulated since 2018. According to reports, these outstanding liabilities eventually rose to nearly ₹1,000 crore, delaying the release of the aircraft.
In addition, some of the aircraft were also subject to legal attachment by the Mumbai Suburban Collector in connection with gratuity claims filed by the All India Jet Airways Staff and Officers Association, further extending the liquidation process.
Passenger-to-Freighter conversions
The departure of the Boeing 777 also reflects a broader trend within the aviation industry, where retired passenger aircraft are increasingly being converted into freighters to meet the sustained growth in global air cargo demand.
Widebody aircraft such as the Boeing 777-300ER continue to attract strong interest from cargo operators because of their payload capability, long-range performance and availability of mature conversion programmes. Rather than being dismantled, many ageing passenger aircraft are finding a second operational life in the air cargo sector.
For aircraft lessors and asset owners, passenger-to-freighter (P2F) conversions have become an important strategy to maximise residual asset value while extending the operational life of mature aircraft.
Asset management
The Jet Airways Boeing 777 programme also underlines the increasingly important role of aircraft asset management during airline restructurings and liquidations.
Recovering value from grounded aircraft requires careful coordination between lessors, financiers, airports, regulators, legal authorities and prospective buyers. Aircraft often remain stranded for extended periods while ownership, outstanding dues and regulatory clearances are resolved before they can be repositioned or returned to service.
The successful transfer of these Boeing 777s demonstrates how distressed aviation assets can eventually be redeployed into productive service through strategic asset management and lifecycle planning.
A new chapter
While the departure of the first Boeing 777 closes one chapter in Jet Airways’ history, it also marks the beginning of a new operational role for the aircraft.
Once converted into a freighter, the aircraft is expected to return to commercial service supporting global cargo operations, illustrating how aircraft can continue generating value long after their passenger service ends.
For the aviation leasing and aftermarket sectors, the transaction serves as another example of how effective lifecycle management, aircraft remarketing and cargo conversion programmes are reshaping the economics of ageing widebody fleets in an evolving global aviation market.
