Jet Airways board okays fund-raising of $300 mn through debt
08 November 2014
The board of Jet Airways has approved the airline's plan to raise long-term finance of up to $300 million through redeemable preferential shares or non-convertible debentures.
The Rs1,842 crore fundraising will be its largest after Etihad's $330-million investment in the airline.
The timeline of the fundraising has not been outlined; but the move will help Jet Airways bring down its debt.
Jet Airways (India) has significantly pared its consolidated net loss to Rs43 crore for the second quarter ended 30 September 2014 as it flew more passengers and improved performance on major operational parameters.
The carrier had reported a net loss of Rs999 crore in the same quarter a year ago revenue.
Revenue went up by 13.7 per cent to Rs. 5,092 crore (Rs 4,480 crore).
''Operational restructuring initiatives with route and network rationalisation are already yielding dividends on the domestic and international networks. Organic network expansion coupled with enhanced global connectivity through alliances and code shares has also helped increase international passenger traffic,'' Jet chief executive Cramer Ball said in a media statement.
This is the airline's first quarterly profit since 2012, thanks to the sale of its frequent flyer business, but the airline continues to lose money if one-off gains are excluded.
Jet has struggled to make money amid fierce competition for fares and high operating costs.