Article Posted on : - Sep 30, 2008

MUMBAI (PTI): Leading private carrier Jet Airways said on Monday it plans to dilute 10 per cent of its equity to garner funds and strengthen the balance-sheet.

“We will do anything which is required to make our balance-sheet strong. We plan to dilute 10 per cent equity,” Jet Airways Chairman Naresh Goyal told reporters after the company's 16th annual general meeting here on Monday.

Jet was in talks with a few institutional investors besides some other investors for this purpose, Goyal said, without disclosing their identities.

“We are talking to investors which include some internationally-renowned funds as well as some serious investors for stake dilution.” He also did not give a time-frame for the stake dilution. "Currently, the market conditions are volatile and not conducive to this,” he said.

The Jet chief said he would not cede control of the company and would not go in for a distress sale. Asked about the airline's financial prospects in the next financial year, Goyal said, “It will depend on fuel prices and the overall economic conditions”.

“I am hoping for an improved performance and that irrational pricing will be stopped,” he said.

“Irrational pricing which some air-carriers have resorted to has led to players not even recovering their costs. You need a 30 per cent hike in fares and 30 per cent cut in capacity to meet the costs,” he said.