Mumbai: Jet Airways (India) Ltd has sought shareholders’ approval to raise long-term finance of up to $300 million (around Rs1,850 crore) through issue of non-convertible debentures to other corporate entities, including its strategic partner Etihad Airways. The company’s board had approved the fund-raising in November. The funds will be used to service its debt.
The airline had earlier said it was expecting to report profit by 2017 through a mix of debt restructuring, sale of wide-body planes, improvements in products and international business expansion The fresh round of funding is the biggest after Etihad picked a stake in the airline. Etihad had also helped Jet refinance ?1,800 crore of its high-cost debt. Jet reduced debt from ?10,500 crore to ?9,800 crore by end-July. The annual interest is ?1,000 crore. The airline significantly pared its consolidated net loss to ?43 crore for the second quarter ended September 30, on account of a gain from the sale of its frequent flyer programme and higher passenger revenue. The carrier had reported a net loss of ?999 crore in the corresponding quarter a year ago. Revenue went up 13.7 per cent to ?5,092 crore (?4,480 crore).
20/01/15 Business Line
The airline had earlier said it was expecting to report profit by 2017 through a mix of debt restructuring, sale of wide-body planes, improvements in products and international business expansion The fresh round of funding is the biggest after Etihad picked a stake in the airline. Etihad had also helped Jet refinance ?1,800 crore of its high-cost debt. Jet reduced debt from ?10,500 crore to ?9,800 crore by end-July. The annual interest is ?1,000 crore. The airline significantly pared its consolidated net loss to ?43 crore for the second quarter ended September 30, on account of a gain from the sale of its frequent flyer programme and higher passenger revenue. The carrier had reported a net loss of ?999 crore in the corresponding quarter a year ago. Revenue went up 13.7 per cent to ?5,092 crore (?4,480 crore).
20/01/15 Business Line
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