JetAirways to invest $2.5 billion to acquire 30 new aircraft

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Jet Airways has deferred its proposal to raise $800 million by way of FCCBs or GDRs to part-finance its capital expenditure programme, especially acquisition of 30 new narrow-body and wide-body aircraft.

The company took the decision to defer this proposal on the ground of a "downturn in the domestic equity market specifically and in the emerging markets as well."

Addressing the 14th AGM meeting here on Wednesday, Mr Naresh Goyal, Chairman of Jet Airways, said the company has deferred these capital-raising plans until market conditions are more conducive. "In the meantime, we have undertaken short-term borrowings from IDBI Bank, SBI and ICICI Bank towards the pre-delivery payment commitments on the new aircraft we have ordered. We are actively monitoring market conditions and will revive our efforts to raise additional capital as soon as a window of opportunity arises," he said.

The company will be investing $2.5 billion over the next three years to acquire 30 new aircraft.

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