More fleet: Jet knocks on SBI's door for $600 mn

New Delhi: Having grounded plans to tap the market for funds, India's largest airline Jet Airways is now knocking on the doors of State Bank of India to raise around $600 million (around Rs 2,800 crore) to part-finance its mega $2.5-billion aircraft acquisition programme.
Jet Airways had signed orders for buying 10 Airbus A330-200s and 10 Boeing 777-300ER jets as part of plans to expand in the global skies.
The airline had initially planned to raise funds for the fleet acquisition through a capital market float - either in India or abroad.
Deliveries of these aircraft would start towards the end of 2006, with the last of the planes expected to be delivered in 2009.
"But with the markets still volatile, Jet has now decided to raise part of the funds from domestic banks and institutions. A loan of around $600 million has already been tied-up with SBI and negotiations are underway with some other institutions,"a source close to the development said.
17/08/06 Byas Anand/Times of India

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