Jet sees big jump in global revenues

Jet Airways today said it hoped to earn 55 per cent of its revenues from international operations in three years, up from the present 15 per cent, even as Chairman Naresh Goyal admitted to deferring the plans to raise $800 million from the domestic and international markets due to unfriendly market conditions.

It also plans to launch a cargo airline either as a joint venture or on its own.

"Owing to the downturn in the domestic equity markets specifically, and in emerging markets more generally, Jet Airways has deferred capital raising plans until market conditions are more conducive," said Goyal.

He said the airline had raised short-term loans from IDBI Bank, State Bank of India and ICICI Bank to make pre-delivery payments for the new fleet it had ordered.

According to sources, the company has raised $500 million in short-term borrowings.

Jet Airways was planning to raise $800 million through foreign currency convertible bonds, global depository receipts, American depository receipts and equity shares to support capital expenditure programme, in particular the delivery of 30 new narrow-body and wide-body aircraft over the next three years.

"We are actively monitoring market conditions and will revive our efforts to raise additional capital as soon as window of opportunity arises," Goyal said.

Asked about the pressures on margin, Goyal said all airlines are feeling the margin pressure in the wake of increased capacity.

Jet Executive Director Saroj Datta said funding for $2.5 billion would be entirely done through finance assistance from UX Exim Bank and export credit agencies of Europe.

"Jet Airways is aiming at 55:45 ratio for revenues from international and domestic operations in next three years. We have already conducted studies to enhance the revenues from international operations," Goyal told reporters on the sidelines of the second annual general meeting.

At present, international operations contribute 15 per cent of its total revenues.