India's second-largest airline by passenger numbers Jet Airways (India) Ltd has got its board approval to raise up to $300 million in long-term finance through redeemable preference shares or non-non convertible debentures or loan from shareholders (Etihad), the company said in a stock market disclosure. This is subject to receipt of all regulatory, corporate and such other approvals.
The company did not disclose the further information regarding the fundraising plans.
For the quarter ended September 30, 2014, the firm reported a strong performance as its three-year turnaround strategy and the partnership with new minority shareholder Etihad Airways started to impact the business positively.
Total revenue for the quarter increased by 13.7 per cent to Rs 5,092 crore from Rs 4,480 crore as compared with the Q2FY14. Its net loss declined over 95 per cent to Rs 43 crore as against a loss of Rs 999 crore in the year-ago period. At a standalone level it clocked a profit of Rs 70 crore as compared to loss of Rs 891 crore last year.
"The operational restructuring initiatives with route and network rationalisation are already yielding dividends on the domestic and international network. The organic network expansion, coupled with enhanced global connectivity through alliances and code shares, has also helped increase international passenger traffic. All of which makes me confident that our move to a single brand by December, will help provide our guests with exceptional value and a significantly enhanced and consistent product offering," said Cramer Ball, CEO, Jet Airways.
The Naresh Goyal-promoted aviation company recently announced that it will be exiting low-cost services and will merge its two no-frills brands with parent full service carrier.
Jet Airways' scrip shot up almost 7 per cent at the close of trading on the BSE in a flat Mumbai market on Monday.
(Edited by Joby Puthuparampil Johnson)