Mumbai: Private carrier Jet Airways will soon do a sale-and-leaseback transaction for 10 Boeing-737 aircraft, freeing up around R600 crore for the airline. While the savings on interest would be insignificant, since it would need to pay rentals on the aircraft, the company could retire a small part of its debt. While the company’s total debt is estimated at close to R13,000 crore, the high-cost portion is approximately R3,000 crore. The company’s net debt-to-equity for the year to March 2011 is estimated by analysts to be over 1,100%, after the announcement of the company’s results for the December 2010 quarter.
According to sources, Jet is in talks with global aircraft leasing companies like GE Capital Aviation Services and the Dublin-based AWAS. The transaction is likely to be concluded in two months. However, this could not be confirmed independently with the company.
12/05/11 Shaheen Mansuri/Financial Express
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