Jet Airways spread planned via rights issue

17 May, 2007: Flying high on spread initiatives, Jet Airways has lined up a plan to mop up $400 million through a rights issue. The airline is also reportedly mulling over starting a full-fledged dedicated cargo service by the end of the year.

Reports quoting Jet chief Naresh Goyal said that the airline is looking at a $400 million rights issue, which is expected to be completed in four months. The money would be utilised for funding aircraft acquisitions, he said. Besides expansion of fleet, the airline is also planning to honor the commitment made by Air Sahara to acquire 10 Boeing aircrafts.

With lack of enough flying machines being felt, Jet has started scouting for more. It has also showcased the new Boeing 777-300Er and Airbus 330-200 it had acquired for its international operations.

The airline which had recently bought Air Sahara, reportedly would need atleast $ 50 million to bring Sahara up to the mark. Jet Airways has already bagged approval from the Union Government to use the Jetlite brand.

Meanwhile the plans for a dedicated cargo service has been kick started with the appointment of a US-based NRI from American Airlines to oversee the project. The full-fledged cargo service would go on stream by the year-end.

It may be recalled that Jet Airways had at the beginning ofthis month announced Brussels as its European hub to connect different points in the US and Canada.