Is Jet Airways worth USD520 million? Temasek circles for 10% stake

The cash flow crisis gripping India’s airlines is intensifying. Market leader, Jet Airways, is reported to be in negotiations to raise over USD260 million in fresh equity and debt to help it survive the Winter. The reported sources of the fresh funds are, unsurprisingly governments – Singapore’s Temasek Holdings (which may take a 10% stake in the form of a fresh issue of shares, for USD52.4 million), and Abu Dhabi investment arm, Mubadala Development Company, which is rumoured to be finalising a USD210 million loan agreement with Jet. [1387 words]

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This report contains the following subheadings:

• Jet Airways sinks deeper into the red
• Passenger numbers fall 13.9% in Sep-08
• JetLite reports break even load factors level of 103.5%
• Signs codeshare with subsidiary JetLite
• Plans to phase out expatriate pilots
• Outlook: Focus to lower costs as it debt levels rise

This report contains the following charts and tables:

• Jet Airways financial highlights: three months ended 30-Jun-08
• Jet Airways passenger revenue: by segment 1Q08 to 2Q09 (financial year ended 30-Mar)
• Jet Airways EBITDAR margin: FY1Q08 to FY2Q09
• Jet Airways passenger load factor vs passenger break even load factor: FY2Q07 to FY2Q09
• Jet Airways domestic passenger numbers vs passenger number growth: Jan-07 Sep-08
• Indian domestic passenger load factors in Sep-08
• JetLite financial highlights: three months ended 30-Sep-08
• JetLite cost per ASK vs cost per RPK and Break Even load factor: 4Q07 to 1Q09
• Jet Airways and JetLite codeshare services