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Jet Airways has sought approval of shareholders to raise $300 million (Rs 1,800 crore) through issue of non-convertible debentures to strategic partner and co-owner Etihad Airways.
In November, the airline board approved the proposal to raise $300 million in debt from a “shareholder”. The airline's notification in November did not name the shareholder.
However, the notice to shareholders seeks nod to raise $300 million from Etihad or any other corporate or trust.
Etihad had also helped Jet refinance Rs 1,800 crore of its high-cost debt. Jet has reduced debt from Rs 10,500 crore to Rs 9,800 crore by end-July. The annual interest is Rs 1,000 crore.
Jet cut its consolidated loss by 95 per cent to Rs 43 crore in the July-September quarter of the current financial year from Rs 999 crore a year ago.
This was due to exceptional and other income from the sale of its loyalty programme. It posted an operating loss of Rs 266 crore on a stand-alone basis.
Subsidiary JetLite continues to lose money. It posted Rs 112-crore consolidated loss but made a profit of Rs 69 crore on a stand-alone basis.
The airline is aiming to become profitable by 2017 through a mix of debt restructuring, sale of wide-body planes, improvements in products and international business expansion.
