FIPB to consider Jet’s foreign fund raising plans

FIPB to consider Jet’s foreign fund raising plans

New Delhi: Private carrier Jet Airways’ plan to raise funds from international institutional investors will come up for approval by the Foreign Investment Promotion Board this week.

According to finance ministry officials, the matter has been slated to be taken up for discussion at the FIPB’s meeting this Friday.

When contacted Jet officials declined to comment on the specifics of the proposed fund raising programme.

“We are only seeking permission from the government to get investments from foreign institutional investors. Once we get the approval we will take a decision accordingly," a senior Jet Airways official said.

The carrier had, however, announced on 24 September that it has got nod from its shareholders to raise an additional capital of up to $400 million. The proposal was approved by its board on 24 July.

Hit by competition and a difficult market environment, Jet Airways reported a loss of Rs225.33 crore in the first quarter ended 30 June. Its total income also went down to Rs2,428.36 crore in the quarter Rs2,899.15 crore in the corresponding period previous fiscal.

The airline had also suffered a significant hit on its bottomline when about 100 of the its nearly 500 pilots went on a five-day strike in September.