Jet may get Rs 405 cr IDFC loan

Jet Airways, which has postponed its plans to come out with a Rs 1,620 crore ($400-million) rights issue in October, has begun talks with banks to raise Rs 405 crore ($100 million) for its low-cost airline JetLite.
A senior Jet executive said the airline was talking to IDFC for the loan.
"This loan is being raised for JetLite's operation and expansion, not for aircraft acquisition," said the Jet official.
The full-service carrier, which is increasingly looking overseas to boost its revenues, will add 28 aircraft to its 57-plane domestic fleet and 19 aircraft to its international fleet by 2009.
Its subsidiary, JetLite, will add 12 aircraft to its fleet of 28 by 2009. Lately, the airline has been scaling back capacity to improve yields on the domestic sector. Analysts Anirudha Dutta and Prakhar Sharma of CLSA Asia Pacific Markets said Jet will be a beneficiary of the consolidation in the aviation sector and the return of pricing power.
11/09/07 Praveena Sharma/Sify

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Categories: Jet Airways Sep 2007