Jet Airways keeps options open to raise funds

Mumbai: Jet Airways, which is buying rival Sahara Airlines, may raise more money as it seeks to retain market share in the South Asian country's increasingly crowded aviation space.
After the $355 million Sahara acquisition in April, Jet Airways said it plans to sell as much as $400 million of stock in the next few months to fund the purchase and buy new planes. Jet Airways raised Rs 1,900 crore ($465 million) in February 2005 in India's biggest initial public offering by an airline.
Consolidation in India's airline business is driving costs down and intensifying the battle for a share of the market that grew 47 per cent to about 29 million travelers until November, according to the civil aviation ministry.
Billionaire Vijay Mallya's brewing and aviation group agreed on May 31 to buy a 26 per cent stake in the low-fare carrier Deccan Aviation, fuelling a record year for mergers and acquisitions in the industry.
The two state-owned carriers, Air India and Indian Airlines , are also being merged by the government to create a bigger airline and compete with local and overseas rivals.
After the merger, likely to be completed by July-end, the new airline would also offer budget travel, V Thulasidas, chairman- designate of the combined entity, said in Mumbai.
13/06/07 Bloomberg/Business Standard

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Categories: Jet Airways Jun 2007