The Hindu Business Line : Jet puts off $400-m rights issue

New Delhi, Sept. 4 Jet Airways has pushed back plans for a $400-million rights issue as the market conditions at the moment were not right, the Chairman, Mr Naresh Goyal, said on Tuesday.

“We have decided to delay the issue by two-three months as the time is not right at the moment. There is enough investor interest in the issue. However, we have decided to defer it in view of the what is happening in the US and other markets,” Mr Goyal said. The airline earlier planned to enter the market in October this year and utilise the monies for funding its fleet acquisition plans.

Speaking to newspersons on the eve of the launch of a five-times-a-week flight between Delhi and Toronto, Mr Goyal said that the airline was in talks with Boeing to acquire new aircraft for JetLite, the erstwhile Air Sahara that it purchased earlier this year.

“We have also been in talks with Canadian Regional Jets, the manufacturer of smaller aircraft and they have agreed to provide us two CRJ-900 planes. We have managed to reduce the losses of Air Sahara by 50 per cent and the airline would break even during the current financial,” Mr Goyal said. Asked whether JetLite would operate on more international routes, the Chairman said that would depend on whether real low cost airlines came in from abroad.

International routes

Jet Airways too would look to operate on more international routes, Mr Goyal announced. “We are examining the option of having a hub in either Zurich or Milan in addition to existing hub at Brussels. The airline is also looking at operating flights to Iran and Israel from where we would look at connecting to the US if the rights are available. Apart from starting services to Johannesburg the airline is also examining the option of flying to Darwin,” said Mr Goyal.

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