Jet Airways to acquire 10 Boeing aircraft

Jet Airways has placed orders to acquire 10 Boeing 737-800 aircraft that will join its fleet in 2006-07.

In the current year, the airline is taking on lease seven Boeing 737-800 aircraft of which three would be used to kick-start its operations on the India-London sector.

By the end of 2006, Jet's fleet would stand at 59, consisting of Boeings and ATRs.

The airline has emphasised that domestic operations would continue to be its core focus area and it would enhance its international operations cautiously.

Jet is in the process of making Hyderabad, Jaipur and Raipur its domestic hubs. At present, Delhi and Mumbai are the two hubs of the airline.

The carrier, which commands a 46 per cent share in the domestic market, today announced its public issue of 1.72 crore equity shares of Rs 10 each at a price band of Rs 950-1125 per share, through the book-building route. It proposes to raise between Rs 1,640.30 crore and Rs 1942.50 crore through the issue. The issue opens on February 18 and closes on 24 February.

According to the merchant banker involved with the issue, global airlines like Airsia, Ryanair, China Eastern and South West were kept in mind while doing the valuation of the company.

Naresh Goel, chairman of Jet Airways, said at a press conference in Mumbai: "The Indian market is growing faster than the world average. Foreign carriers from across the globe want to operate more and more flights out of India. This obviously indicates the potential of international flights operating out of India. Currently, the Indian carriers command only 20- per cent of the international operations market. We would like to ensure that the share of Indian airline companies increase."

Goel, who currently owns 100 per cent equity in the airline, will hold 80 per cent equity post the public issue.

At present, Jet operates on international routes such as Colombo (Sri Lanka) and Kathmandu (Nepal).

Following the government's decision to domestic carriers to operate on other international destinations, Jet Airways have been designated to operate daily scheduled operations to London Singapore and Kuala Lumpur.

The total revenue of the company in the financial year 2004 stood at Rs 3,565.7 crore while it was Rs 3,198 crore at the end of first nine month of the current financial year.