Challenge Group paid $61 mn for the last two Jet Airways B777-300ERs

Nearly seven years after Jet Airways ceased operations, five of the airline’s grounded widebody aircraft are preparing for a second life, this time in the global air cargo market. European cargo carrier Challenge Group, through its Malta-based subsidiary Ace Aviation, has spent more than $107 million acquiring five Boeing 777-300ER aircraft that once flew under the Jet Airways banner. These aircraft are around 19 years old and have remained grounded since April 2019.

As an outcome of the e-auction conducted by Jet Airways’ liquidator Satish Kumar Gupta in consultation with the Stakeholders’ Consultation Committee, Challenge Group won the bid for two of the remaining widebody aircraft of the non-operational Indian airline. Two aircraft parked at Delhi’s Indira Gandhi International Airport were acquired for around $61 million after Challenge Group won the auction against a total reserve price of $38 million (Rs. 356 crore). The auction was carried out on the BAANKNET platform in accordance with Regulation 32 of the IBBI (Liquidation Process) Regulations 2016.

The aircraft sales form part of the liquidation of Jet Airways, once considered India’s premier private airline. Jet Airways ceased operations on April 17, 2019, following severe financial distress. After several unsuccessful attempts to revive the airline under new ownership, the Supreme Court of India ordered its liquidation on November 7, 2024, bringing an end to the carrier’s 26-year run. The liquidation decision also marked the conclusion of a five-year legal battle to revive the airline through the corporate insolvency resolution process.

The other three out of five aircraft were earlier purchased by Challenge Group for $46 million through its Malta-based subsidiary Ace Aviation as part of Jet Airways’ liquidation under the Insolvency and Bankruptcy Code (IBC), following consultation with the Stakeholders’ Consultation Committee and approval from the National Company Law Tribunal (NCLT), as per filings by Jet Airways on BSE and NSE on February 11, 2026.

Challenge Group had originally placed bids for the aircraft in 2022 with plans to convert them into dedicated freighters. The company deposited $5.6 million and signed a letter of intent, but the acquisition was later blocked. The amount included $4.6 million as an Earnest Money Deposit (EMD) for three aircraft parked in Mumbai and an additional $1 million as token money for two Boeing 777s parked in Delhi.

The two aircraft include:

• MSN 35157 (VT-JET) — purchased for around $33 million (Rs 309 crore)
• MSN 35160 (VT-JEU) — purchased for around $27 million (Rs 258 crore)

Together, the two assets were acquired for approximately $61.4 million (Rs 558 crore). The valuation is notable given that the aircraft have been parked and non-operational since Jet Airways suspended operations in April 2019.

Each aircraft was sold with two engines included in the purchase, and all five aircraft were of the same model and similar age, making the difference in price particularly notable.

Strategy to convert aircraft into freighters
The acquisitions form part of Challenge Group’s wider strategy to expand its cargo fleet through passenger-to-freighter conversions.

The aircraft will be converted under the Israel Aerospace Industries (IAI) B777-300ERSF (Extended Range Special Freighter) conversion programme, widely known in the industry as ‘The Big Twin.’ IAI launched the programme in October 2019 by Kalitta Air and GECAS (now AerCap). In June 2020, the prototype aircraft, previously operated by Emirates, was delivered to IAI’s conversion facility in Tel Aviv to begin the modification process.

The conversion was completed in early 2023, after which the aircraft underwent a series of ground and flight tests to validate the freighter configuration. The prototype made its first public appearance in November 2024 at the Dubai Airshow, featuring a special “Big Twin” livery along with Kalitta Air, AerCap and IAI branding.

Originally expected to enter service in 2022, the programme has faced certification delays. Despite the delays, industry interest in the platform has continued to grow. On May 19, 2025, Challenge Group announced the launch of its Boeing 777-300ERSF conversion programme as part of its fleet expansion strategy, stating that it plans to introduce the converted freighter into its fleet during the year. It also mentioned the aircraft is designed to transform former passenger aircraft into large freighters capable of carrying close to 100 tonnes of cargo.

In an earlier interview with The STAT Trade Times, Michael Koish, Chief Investment Officer of Challenge Group, confirmed the airline had already secured conversion slots. “Upon acquiring the B777s from Jet Airways, we plan to convert them into freighters using the conversion slots secured with IAI for 2025 and 2026,” Koish mentioned.

With its latest acquisition, Challenge Group’s fleet now totals 18 aircraft: six Boeing 747‑400Fs, four Boeing 767‑300Fs, and eight Boeing 777‑300ERs. Of these, only nine freighters are currently operational, including its first 777‑300ERSF. Two 747‑400Fs remain parked, two of the eight 777‑300ERs are scheduled for conversion this year, and five ex‑Jet Airways aircraft are still awaiting release from India. Once converted, the aircraft will strengthen the airline’s growing widebody freighter fleet.

Earlier in 2025, Challenge Group CEO Yossi Shoukroun had indicated that after successfully completing Boeing 767-300 BDSF conversions, the company plans to convert three more aircraft with options for four additional conversions, potentially adding several B777-300ERSF freighters within the next five years.

But, before these Jet Airways aircraft can be converted, they must first be restored to an airworthy condition and ferried out of India. And, before these aircraft are flown to the conversion facility in Tel Aviv, the aircraft must be deregistered by India’s Directorate General of Civil Aviation (DGCA).

Explaining the process in an earlier interview, Raju Kethavath, Airworthiness Inspector at DGCA, said aircraft grounded for long periods require extensive technical work before they can Return-to-Service (RTS). “If an aircraft is grounded for a long period and needs to be restored to service, it will require an RTS package from the Original Equipment Manufacturers (OEMs). The operator or owner must collect necessary technical data, including inspections, component replacements, and overhauls for various parts such as the airframe, engines, auxiliary power unit (APU), avionics, and software updates. This comprehensive data must then be submitted to the DGCA for approval.”

Restoring the aircraft to flying condition can involve significant costs. In an earlier interview with The STAT Trade Times, Gagan Jacobs, who has been the Head of Technical Contracts & Transformation at Jet Airways, said the cost varies depending on the aircraft’s condition and inactivity period. “The costs to make a grounded Boeing 777 aircraft airworthy can vary greatly, depending on its condition and inactivity period.”

He added that a Return-to-Service inspection alone could cost between $500,000 and $2 million per aircraft, while engine maintenance can cost between $10 million and $15 million per engine, depending on the condition of the engines and operating hours. Jacobs also noted that additional modifications could add another $2 million to $5 million per aircraft, meaning that around $10 million per aircraft may be required just to prepare them to fly out of India.

Once restored, the aircraft will undergo the B777-300ERSF passenger-to-freighter conversion, which is estimated to cost around $35–40 million per aircraft. The conversion involves structural modifications, installation of a cargo door, reinforcement of the aircraft floor, avionics upgrades and certification work. Taken together, Ace Aviation may need to invest roughly $70 million per aircraft before the aircraft enters commercial cargo service.

According to IBA Insights, strong demand for the Boeing 777-300ER platform and GE90-115 engines, along with the complexity of the conversion programme, means the on-ramp price for such aircraft could reach $75–80 million for a mid-life aircraft, and potentially $100 million if major engine work is required.

Demand for converted aircraft is surging, driven by the lack of alternatives in the large widebody freighter segment. With Boeing’s B777‑200F set to end production by 2027 under ICAO emissions rules, conversions are fast becoming the industry’s only path to sustaining capacity at scale.

For Challenge Group, however, the purchase represents a strategic long-term bet on future cargo capacity, and a new chapter for aircraft that once carried passengers across the world under the Jet Airways name.