Jet Airways plans to more than double loan repayments to help attract investors after a default grounded rival Kingfisher Airlines Ltd.
India’s biggest listed carrier will pay $600 million of debt in the year ending March 31 and seek rupee loans with interest rates as low as 10 percent, Chief Financial Officer Ravishankar Gopalakrishnan said in a Nov. 5 conference call. The company, which pays as much as 14 percent on some debt, is looking for ways to reduce borrowing costs as the nation’s central bank keeps its benchmark repurchase rate at 8 percent, the highest among major Asian economies, to curb inflation.
“In terms of raising additional equity, being able to reduce your leverage makes it more attractive for potential investors,” Binit Somaia, a Sydney-based director at industry consultant CAPA Centre for Aviation, said Nov. 8 by telephone.
12/11/12 Karthikeyan Sundaram/Bloomberg Businessweek
