Jet Air Appoints Bankers To Raise Rs 900 Crore

Jet Airways, the country's largest private domestic airline, is planning to raise Rs 900 crore through different instruments including equity, for expansion of its fleet.

It has appointed merchant bankers to scout for an equity partner and arrange funds through other instruments.

Sources in one of the merchant bankers appointed, said: "Most of the issue has been pre-sold", adding that a foreign equity partnership could not be ruled out.

When contacted, top-level sources in Jet Airways said: "We are in the process of raising funds, but cannot divulge details at this point." Jet refused to either confirm or deny the sum involved.

This development comes close on the heels of the central government's decision to allow bidders for strategic stake in Indian Airlines and Air-India to enter into technical alliances with foreign airlines. At present the Domestic Air Transport Policy permits foreign equity only up to 40 per cent.

The Naresh Goel-promoted Jet Airways started operations in 1993 with 4 aircraft serving 12 destinations across the country. Now it has 30 aircraft in its stable with 195 flights daily that fly to 39 destinations.

It claims to hold a marketshare of 34 per cent in domestic aviation market.

The airline has an agreement with Ansett Australia for training its pilots and engineers. It also aided by Speedwing (a British Airways subsidiary) to conduct a programme on customer service excellence for staff across functions at all levels.