FIPB to consider Jet's foreign fund raising plans

Private carrier Jet Airways' plan to raise funds from international institutional investors will come up for approval by the Foreign Investment Promotion Board this week.

According to finance ministry officials, the matter has been slated to be taken up for discussion at the FIPB's meeting this Friday.

When contacted Jet officials declined to comment on the specifics of the proposed fund raising programme.

"We are only seeking permission from the government to get investments from foreign institutional investors. Once we get the approval we will take a decision accordingly," a senior Jet Airways official said.

The carrier had, however, announced on September 24 that it has got nod from its shareholders to raise an additional capital of up to $400 million. The proposal was approved by its board on July 24.

Hit by competition and a difficult market environment, Jet Airways reported a loss of Rs 225.33 crore in the first quarter ended June 30. Its total income also went down to Rs 2,428.36 crore in the quarter Rs 2,899.15 crore in the corresponding period previous fiscal.

The airline had also suffered a significant hit on its bottomline when about 100 of the its nearly 500 pilots went on a five-day strike in September.