A key component of Indian aircraft parts maker Jet Airways has signed a deal to buy the American firm Janitrol Aircraft Engines for $4.2 billion, raising questions over the future of Jet Airways’ struggling business.
Jet Airways, the world’s third-largest carrier by passenger volume, announced the deal on Thursday, as the company struggles to attract new investors.
It also announced a new corporate structure for its fleet, saying it will continue to be headquartered in San Francisco.
“The announcement of this strategic investment in Janitross is another step in our ongoing transformation of our company to become the leading aviation and fuel-efficiency company in the world,” Jet Airways chief executive officer A.P. Jaitley said in a statement.
“This is another important step in the growth and transformation of Jet Airlines as an airline.”
Janitroll is a manufacturer of jet engines, but the deal does not include jet engines from Jet Airways itself.
Janitroller has struggled to build an aviation fleet.
Its sales fell to a $10.8 billion loss in 2015, as jet fuel costs rose and the number of planes that use jet fuel more than doubled.
Janirol had a record-low market value of $1.6 billion in February, according to Bloomberg data, and a loss of $6.5 billion in 2015.
The company had revenue of $3.8bn in 2016, but lost $8.5bn in the year.
Jet Airlines shares fell about 10% to $32.30 on the Nasdaq on Thursday.
J&M Aviation, the company’s aircraft manufacturer, is also part of the Jet Airways deal.
“J&[email protected]& is delighted to be joining Jet Airways and is excited to have the opportunity to build a strong, diversified aerospace portfolio in our country,” Janitroll said in the statement.
Jet Aviation had previously said it was considering adding new aircraft makers to its fleet.
“In the future, J&[email protected] is likely to expand its presence in the aviation industry, particularly in the aerospace sector, by expanding its capabilities,” the company said in February.
Jet Airline had about 100 aircraft, including its fleet of Boeing 737-800s, according, Bloomberg data.