Jet to consider $400 mn rights issue on June 26
The company says its board will consider a rights issue of shares to raise up to $400 million.business Updated: Jun 19, 2007 11:55 IST
Jet Airways Ltd will consider a rights equity issue on June 26 to raise up to $400 million, the private carrier said on Tuesday, as it seeks to expand overseas and rehaul a recent acquisition.
Jet, which has nearly a third of the Indian market, is launching more overseas routes in the face of growing competition in the fast-expanding domestic aviation market.
An estimated 35 million domestic passengers took to the skies in the fiscal year to March 2007, an increase of 39 per cent from the previous year, on the back of cheap fares and new flights.
The market is forecast to expand at more than 20 per cent a year till 2010.
Jet, which acquired domestic carrier Air Sahara in April for 14.5 billion rupees, has said it would raise up to $400 million for its international expansion and aircraft acquisition plans, as well as to overhaul Sahara.
Sahara, now named JetLite, operates as a discount carrier.
Tough competition is forcing consolidation, with Kingfisher Airlines -- owned by UB Holdings Ltd -- buying a stake in low-cost leader Deccan Aviation Ltd and persistent interest in discount carrier SpiceJet.
Jet will also announce its fourth-quarter and full-year results on June 26, it said in a statement.