After Sahara, Goyal says Jet is open to buying another airline

Naresh Goyal, who promoted and chairs the country's largest domestic airline, said he is open to buying out smaller domestic carriers that might be on offer to expand his airline empire.

The group is also working on setting up a separate company for its impending cargo business in the next six months.

"The markets do not remain the same forever but still, anything that makes sense to Jet Airways' shareholders will make sense for the promoters as well," Goyal said.

Together with JetLite, formerly Air Sahara, which Jet bought last year, the airline controls over 29 per cent of the Indian domestic market.

Air Sahara was Goyal's first airline acquisition.

Goyal's cargo business includes acquiring five to six aircraft and focusing on express cargo, which guarantees delivery time, which currently has no players.

The business is expected to account for 15 per cent of revenues from the current eight per cent in the next six to twelve months.

Apart from the new aircraft, Goyal said the airline will also use the aircraft it flies on the domestic routes for belly cargo.

Added Sudheer Ragavhan, the airline's chief commercial officer, "The airline is also in talks with the regional carriers to use small aircraft to pick up loose cargo. We are working out the logistics for seamlessly transferring that cargo to bigger aircraft."

Rights offer subject to market conditions

Jet Airways plans to go ahead with its twice-delayed rights issue when market conditions are favourable, Naresh Goyal said at a press conference to announce Jet's expansion plans for international operations.

Jet plans to raise as much as $400 million through this issue to finance the aircraft it has ordered in the last three years.

"We are not going to make any distress sale," said Goyal.

Goyal added that he would dilute 5 to 10 per cent of his own equity when the time is right. Jet has a market capitalisation of over Rs 1,000 crore, so it is outside the purview of stock exchange guidelines that disallow promoters from holding more than 75 per cent in a company.

Jet Airways first announced its rights issue in September last year, postponed it to March and then put it on hold owing to adverse market conditions.

Jet also has plans to raise another $400 million through qualified institutional placements.