Naresh Goyal-promoted Jet Airways is set to give a final push to its plans of raising more than Rs 1,000 crore (Rs 10 billion) as working capital and general purpose corporate loan.
The company is in talks with some Indian and West Asian banks for raising the loan. According to sources, Jet Airways is likely to come out with an announcement in this regard next month.
The airline has also finalised its plans to lease out five of its Boeing 777-300 ER aircraft to a Turkish carrier, sources add. The airline has been able to negotiate a premium for the deal in a market where lease premiums have dropped.
Goyal was recently in Dubai, Abu Dhabi and Turkey to work out the details for raising funds.
Domestic carriers are facing turbulent times because of the high crude prices and variable taxation on the air turbine fuel. The problem is now compounded because of a slump in the economy now.
The combined losses of domestic carriers are pegged at $1.5 billion, which are likely to be revised upwards after the third quarter.
Most of the carriers owe substantial dues to the government with Jet owing more than Rs 1,057 crore alone to the oil companies. Now, the government has provided relief regarding these payments.
Jet Airways has been in a crunch situation as the airline's plans to raise capital have gone haywire because of the adverse market conditions.
The airline was forced to postpone the rights issue through which it was planning to raise $400 million and then another $400 million through QIP.
Jet, which has incurred more than Rs 700 crore (Rs 7 billion) loss in the last quarter, will announce its second quarter results on Saturday.
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