Jet to raise $400 million to fund aircraft acquisition for air cargo service

14 May 2007

Mumbai: Jet Airways says it is contemplating a $400-million rights issue for its expansion plans and start full-fledged dedicated cargo service this year.

According to Naresh Goyal, chairman, Jet Airways, "We are looking at a $400 million rights issue, which is expected to be completed in four months and the money would be utilised for funding aircraft acquisition."

Goyal said that the airlines would also honour the commitment to acquire 10 Boeing aircraft made by Air Sahara, which Jet had acquired for Rs1,450 crore. (See: Jet to acquire Sahara for Rs1,450 crore)

"We hope to launch the full-fledged cargo service by the year-end. Currently, six per cent of our revenue comes from cargo operations and we hope to make it to 10 per cent by the year end," Goyal said.

Goyal, who was speaking to reporters after showcasing the two new aircraft, Boeing 777-300er and Airbus 330-200 that it has acquired for its international operations said that Jet has already appointed a US-based NRI from American airlines to oversee the project.

Goyal said Jet would need $50 million to upgrade Sahara''s standards and added that Jet Airways had already received approval from the government to use `Jetlite` brand and the first flight in that brand would take off within two-months.