Jet Airways plan to generate funds to meet obligations.

Jet Airways Mumbai: Jet Airways Ltd said on Tuesday it was confident of generates enough cash to meet its obligations and has plans to raise funds partly through the sale and lease back of aircraft.

Prior on Tuesday, auditors of Jet, India’s biggest airline, had said that the company needs to raise funds or generate cash flows in the future to meets its obligations, including financial support to its loss-making subsidiary JetLite.

The unit posted a loss of 1.07 billion rupees in the past fiscal year through March 2011, according to Jet’s annual report. Till September, its parent had infused 16.45 billion rupees as equity and given an additional 14.14 billion rupees as loans to the carrier.

“As we are entering the peak season, the yields are on the rise and together with the cost reduction programme that we have put in place, our operational cash flows will improve significantly,” Jet Airways said in a statement to Reuters.


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