Jet to pay 14% interest to PSBs on two-year loan

Mumbai: Jet airways, the country’s largest domestic carrier, will pay 14% interest to state-owned banks for a two-year loan the company had raised last quarter, according to CEO Wolfgang Prock-Schauer. The airline raised Rs 1,250 crore and will borrow an additional Rs 750 crore to meet its working capital needs. The company incurs a fuel bill of about Rs 250 crore a month and owes Rs 1,000 crore to PSU oil firms.
Jet is banking on route rationalisation and a drop in aviation turbine fuel prices to break even by 2011. “The code sharing between Jet and Kingfisher will start in a few months as both are working on it. There are absolutely no differences in the alliance terms,” Jet Airways vice-president (revenue management) Raj Sivakumar said.
The private carrier will also lease out four more B777 aircraft to foreign airlines, Mr Prock-Schauer said. The company is also planning to lease out aircraft from its subsidiary JetLite. Leasing out an aircraft can generate an income of Rs 10-20 crore a month. Currently, Jet has a fleet size of 84.
22/01/09 Mithun Roy/Economic Times

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Categories: Jet Airways Jan 2009