The Hindu Business Line : Jet plans rights issue to raise $400 m

JET'S NEW CATCH: Mr Vilasrao Deshmukh, Chief Minister of Maharashtra (seated), with Mr Naresh Goyal, Chairman, Jet Airways Ltd; Mr. Praful Patel, Minister of State of Civil Aviation, and Mr. S. M. Krishna, Governor of Maharashtra, inside the economy class of the Boeing 777-300 ER, which landed at the Chatrapati Shivaji International Airport in Mumbai on Sunday. — Paul Noronha

Mumbai May 13 Jet Airways plans a $400-million rights issue to fund its expansion plans.

Mr Vic Dungca, Director, said that the proposal is now being vetted by merchant bankers and is likely to be cleared in two weeks.

He added that the issue should come through in 4-5 months.

He was speaking to newspersons at a function to showcase the two new aircraft of Jet Airways - the Airbus 330-200 and the Boeing 777-300ER.

Part of the fund - about $50 million - would be used for Jetlite, the renamed Air Sahara, which Jet acquired recently, he added.

Mr Naresh Goyal, Chairman, said that the airline plans to add 22 new aircraft to its fleet by 2008, of which 10 will be Airbus 330 and 10 Boeing 777.

The airline also plans to set up a dedicated cargo airline. "We are in discussions with Lufthansa and should announce it before 2007-end."

Mr Goyal did not reveal the details of the proposed tie-up with the German airline.

Cargo accounts for about six per cent of the airline's business, which Mr Goyal said would go up to 10 per cent in the current fiscal.

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