Mumbai: Even while embroiled in a court case and still facing regulatory queries, Jet Airways has begun to reap benefits of its recently concluded $379-million deal with Etihad Airways. The airline has over the last one month repaid over $100 million worth of debt, from the funds raised via the 24% stake sale to the Abu Dhabi-based carrier, reducing its debt to $1.8 billion, said a person close to the development who didn't want to be named.
The airline is lso close to finalising next plane buy and may take up management changes in its next board meeting, the person said. Reducing debt is crucial for Jet, as it draws up joint expansion plans with its strategic partner. It is also one of the key reasons why it got into the deal with the Gulf carrier.
India's airlines are one of the most overleveraged in the world, as many embarked on plane purchase plans too large to meet demand for travel in the country. Others took on loans to fund operations as revenues didn't match the increase in daily costs.
Read News In Full 10/01/14 Anirban Chowdhury/Economic Times
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