Jet Airways postpones $400 mn rights issue

New Delhi: The liquidity crunch in global markets following the crisis in the US sub-prime mortgage business has prompted Jet Airways to postpone its $ 400 million rights issue to finance the airline's aircraft acquisition by two or three months. The issue was scheduled for October.
Talking to reporters on the sidelines of the launch of Jet's Delhi-Toronto flight, Chairman Naresh Goyal said, "This does not mean that there is any lack of investor interest. We have decided to delay the issue because of US market conditions."
According to company sources, the rights issue would have required Goyal, who owns around 80 per cent of the airline, to raise roughly $ 320 million in his personal capacity.
This would have entailed raising loans from international institutions, which would have been difficult in current market conditions.
However, Goyal said Jet's fleet expansion would not be impacted by the postponement of the rights issue. The airline is adding 25 aircraft — both Boeings and Airbuses — to its fleet for international operations.
05/09/07 Business Standard

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Categories: Jet Airways Sep 2007