Aviation

Jet Airways set to raise Rs 3,500 crore via stake sale, save Rs 2,000 crore in costs: report

Updated : September 28, 2018 08:35 AM IST

The airline has told lenders it will take shave off costs by as much as Rs 2,000 crore in the next two years, if the rupee and crude oil prices support: report

The airline spoke on how the worsening macroeconomic conditions were beyond the company’s control and the profitability targets are likely to be missed.

If the airline fails to infuse funds through the stake sale in JetPrivilege, it will cover up via equity infusion by March 31.

Crisis-hit Jet Airways is likely to have informed its lenders that it will raise around Rs 3,500 crore in the next six months via a stake sale in its loyalty programme, JetPrivilege, and pump in fresh funds in the company, Mint reported.

The airline also told lenders it will shave off costs by as much as Rs 2,000 crore over the next two years, if the rupee and crude oil prices support, the report said citing a person with direct knowledge of the matter.

Jet Airways’ chief executive, Vinay Dube, in a letter said if the airline fails to infuse funds through the stake sale in JetPrivilege, it will cover up via equity infusion by March 31 and make efforts to obtain a bridge loan from investors, sources told the paper.

On Friday, Jet Airways told its pilots, aircraft maintenance engineers and senior management team that part of their August salaries will be paid by October 9, reported PTI.

The airline, which has posted losses for two straight quarters, is grappling with financial woes.

Jet Airways set to raise Rs 3,500 crore via stake sale, save Rs 2,000 crore in costs: report

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