Logistics

Jet plans to expand global presence

Our Bureau Mumbai | Updated on August 08, 2013 Published on August 08, 2013




Jet Airways said that it plans to grow international capacity by 10-12 per cent and have a 10-year network plan to expand its footprints to Abu Dhabi and beyond.

International operations accounted for 58 per cent of its total revenues. “Through the deal with Etihad, we also plan to enhance our corporate contacts in the international market. Right now, we do not have strong corporate contacts internationally,” said K.G. Vishwanath, Vice-President (commercial strategy and investor relations) on the sidelines of the 21st Annual General Meeting on Thursday.

He said the company is looking to raise $300 million through the external commercial borrowing (ECB) route. This will include the deal for $150 million that will be facilitated through its partnership with Etihad. Abu Dhabi-based Etihad bought a 24 per cent stake in Jet for $389 million.

“We will raise another $150 million through financial institutions. We are already in talks with some banks,” Vishwanath added. The ECB limit, for each airline, is capped at $300 million.

Of its total debt of $2.03 billion, $700 million is working capital loan while $300 million is high cost loan, with interest flow between 12 per cent and 14 per cent, he said.

Through the ECB route, Jet Airways will have access to cheaper foreign currency loans.

>nivedita.ganguly@thehindu.co.in

Published on August 08, 2013
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