Jet to expand domestic capacity by 15% this fiscal

Mumbai: Jet Airways, India’s largest private carrier by market share, will expand domestic capacity by 10-15% in the current financial year, the company’s chairman Naresh Goyal said on the sidelines of its annual general meeting.
This would mean Jet Airways will add five Boeing 737s to its fleet this year in what could be the first sign of recovery for domestic aviation companies reeling under heavy debt burden. During last fiscal, Jet Airways had cut capacity by 25% and leased seven wide body Boeing 777 aircraft to foreign carriers.
Mr Goyal also said that an equity dilution of up to 20% is also being looked at. “We have sought FIPB approval and are waiting for the clearance,” he said.
Mr Goyal, through a wholly-owned entity, Tailwinds, holds 80% of equity in Jet Airways. The company is also looking at fund raising options and a qualified institutional placement to raise $400 million is also on the cards. Mr Goyal did not provide a timeline to any such fund raising by the company.
27/08/10 Economic Times

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Categories: Jet Airways Aug 2010