Jet to raise $ 400 million for expansion needs, to launch cargo service

Mumbai: Jet Airways is considering a $400 million rights issue to fund its expansion plans, which include the launch of a full-fledged cargo service by the end of the year, chairman Naresh Goyal said on Sunday.

"We are looking at a $400 million rights issue, which is expected to be completed in four months and the money would be utilised for funding aircraft acquisition," Goyal told reporters here. He was speaking on the occasion of the airline announcing the induction of two new aircraft on its long-haul international routes.

Goyal also said that the airline would honour the commitment made by Air Sahara to acquire 10 Boeing aircraft. Jet recently acquired Air Sahara after a long drawn, and often, acrimonious process.

"Where are the planes? There is scarcity of planes. We are going to exercise the options," Goyal said.