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Jet Airways to repay Rs 1,000 cr of debt each year

Jet Airways to repay Rs 1,000 cr of debt each year
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First Published: Thu, Feb 03 2011. 04 02 PM IST
Updated: Thu, Feb 03 2011. 04 02 PM IST
Mumbai: Jet Airways (India) Ltd, the country’s top carrier by market share, plans to repay about Rs 1,000 crore of debt each fiscal and is also looking to prepay some of its high-cost rupee debt, officials said on Thursday.
The company is looking to prepay its high-cost debt amounting to between Rs 20 billion to Rs 30 billion of debt, “at the earliest”, Jet officials said in a conference call with analysts.
Jet Airways has a total debt of around Rs 13,000 crore.
The airline is awaiting approval from the Foreign Investment Promotion Board (FIPB) to raise up to $400 million from a share sale to foreign institutional investors.
On Wednesday, Jet Airways had reported a 11.3% rise in third quarter net profit helped by an increase in air traffic.
A wealthier middle class, driven by an economy that is growing at about 8.5% a year, has lifted demand for air travel in India.
Jet officials said on Thursday the airline expects to improve margins in both domestic and international operations by 2-3% going ahead, while yields may rise as much as 8-10% in FY12, supported by higher demand.
It plans to start new international routes next fiscal to destinations in Europe and far-east Asia, they added.
Jet Airways shares closed up 3.02% at Rs 518.35 in the Bombay Stock Exchange.
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First Published: Thu, Feb 03 2011. 04 02 PM IST