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.