Jet Airways delays $400 mn rights issue

Jet Airways Ltd, India's top private airline, is delaying a planned $400 million rights issue because of the recent turmoil in global credit markets, its chairman said on Tuesday. "It is delayed by two to three months, but we are OK even without the rights issue," Naresh Goyal told reporters at a news conference ahead of its first New Delhi- Toronto flight.

"Banks are still willing to lend, but we have decided to delay it." Jet's Airways' board had approved raising up to $400 million by way of a rights issue in June to finance its expansion and overhaul of Air Sahara, which it bought in April.

Jet has said it is looking at increasing the share of overseas operations to half its revenue by 2009 as the Indian market becomes increasingly competitive. India's aviation market is forecast to expand at more than 20 per cent annually till 2010.

Read more in The Economic Times article.

Jet Airways' $400 m rights by mid-Oct

The proposed $400 million rights issue of Naresh Goyal-promoted private airline Jet Airways will hit the capital market by mid-October.

Jet Airways, which recently acquired Air Sahara (now JetLite) for Rs 1,450 crore, is currently in the process of filing a prospectus with market regulator Securities and Exchange Board of India (Sebi).

Jet Airways has appointed HSBC and SSKI as merchant bankers to the rights issue, which will be used for acquisition of aircraft.

Goyal holds 80 per cent share in Jet Airways, while the remaining stake is with the public. Meanwhile, Jet Airways today launched its flight connecting India and the US, with daily flights from Mumbai to Newark via its hub in Brussels.

Read more in The Business Standard article.

Jet FY-08 net dips 94 pc; to raise $400 mn

Private carrier Jet Airways India, which recently acquired rival Air Sahara, on Tuesday posted a 93.8 per cent dip in net profit at Rs 27.94 crore for the fiscal ended March 31, as compared to Rs 452.04 crore in the previous year.

The carrier's total income increased 21.5 per cent to Rs 7,401.31 crore for the fiscal from Rs 6,087.57 crore a year ago, it informed the Bombay Stock Exchange (BSE).Jet Airways' net profit for the fourth quarter ended March 31 declined 61.24 per cent at Rs 88.01 crore, as compared to Rs 227.12 crore for the same period last year.

The fund raising comes close on the heels of Jet Airways buying Air Sahara in April this year and its plans to launch low-cost arm, JetLite, in the next few months.

The airline chief Naresh Goyal had earlier said all necessary government clearances for JetLite have been received. The company might operate JetLite on international sectors in future.

Read more in The Economic Times article.

Jet Airways plans to raise $400 mn

Private carrier Jet Airways, which recently acquired rival Air Sahara, said on 19 June it plans to raise $400 million (Rs1,600 crore).“The board of directors at its meeting on 26 June would consider issuance of equity shares on a rights basis for an amount of up to $400 million or an equivalent amount in Indian Rupees,” Jet Airways informed Bombay Stock Exchange.

The proposal comes close on the heels of Jet Airways buying Air Sahara in April this year and its plans to launch low-cost arm, JetLite, in the next few months.The company would also consider the audited financial results for the fourth quarter and year ended 31 March and recommend dividend for 2006-07.

The shares of Jet were up 1.06% in intra-day trading at Rs793.10 on the BSE.
Jet Airways executive director Saroj Dutta had said earlier this month the company was open to raise additional resources to fund its expansion plans.The airline chief Naresh Goyal had said earlier that all necessary government clearances for JetLite had been received and the company might operate JetLite on international sectors in the future.

Paramount Airways woos GoAir for buyout

After Air India-Indian Airlines, Jet Airways-Sahara and Kingfisher-Deccan Aviation, another aviation merger is in the air.

Madurai-based Paramount Airways is interested in acquiring the Mumbai-based budget carrier GoAir, promoted by the Wadia group.

Sources close to the developments said the investment bankers of Paramount Airways have expressed their interest and initiated discussions with GoAir representatives. The talks, however, have not made much headway as yet as GoAir is reluctant to move ahead.

Paramount Airways, which currently operates only in south India, has firmed up plans to enter the western region. GoAir has only four leased aircraft but Paramount is more interested in its slots, parking bays, pilots and other infrastructure, sources said.

GoAir had earlier indicated its plan to dilute 26-40 per cent equity through a private equity placement.

Read more in The Economic Times article.

Air Deccan rules out sale to beer billionaire, Vijay Mallya

Air Deccan, India’s largest low-fare carrier, on 8 May ruled out a sale to billionaire Vijay Mallya, saying a combination of the two airlines would make no cultural or business sense.Gopinath, who is known to his airline employees as Captain Gopi, said there was “absolutely” no chance of Air Deccan selling a stake to Kingfisher.

Still the bespectacled, low-key entrepreneur said he got along well with Mallya, a flaymboyant tycoon who has named his airline after the flagship beer brand of his UB Group.Mallya said on 7 May in New Delhi, at a press conference with Airbus Industries, that he was interested in buying Air Deccan but an acquisition was not imminent.
Air Deccan last week denied media reports that it was in talks with Kingfisher Airlines.

A deal would create an airline that would control 38% of India’s domestic aviation market, overtaking the 33% share of Jet Airways, which last month bought rival Air Sahara for Rs14.5 billion.

Read more in The Live Mint article.

Jet to buy Air Sahara at less than $500 mn

Nine months after calling it off, Jet Airways is understood to have struck a deal to revive the takeover of Air Sahara, but at a lower price than the $500 million offered in January last year.

The agreement, which was reached during the final arbitration hearings here, valued the deal at little over Rs 1,800 crore.According to sources Jet, leader in the domestic aviation space, will not pay Rs 275 crore toward 'creditors deduction'.

Naresh Goyal-promoted Jet has already paid Rs 500 crore in lieu of shares pledged by Sahara last year. The remaining nearly Rs 1,365 crore would be paid through the bank account to complete the deal.

Meanwhile, there are reports that valuation of Air Sahara could be around Rs 1,800 crore and Jet may offer to takeover the airline for that amount, which would include adjustment of Rs 500 crore already paid to the Lucknow-based carrier.

Read more in The Economic Times article.