http://timesofindia.indiatimes.com/articleshow/1899142.cms
 More fleet: Jet knocks on SBI's door for $600 mn
Byas Anand
[ 17 Aug, 2006 0156hrs ISTTIMES NEWS NETWORK ]
 
 
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NEW DELHI: Having grounded plans to tap the market for funds, India's largest airline Jet Airways is now knocking on the doors of State Bank of India to raise around $600 million (around Rs 2,800 crore) to part-finance its mega $2.5-billion aircraft acquisition programme.

Jet Airways had signed orders for buying 10 Airbus A330-200s and 10 Boeing 777-300ER jets as part of plans to expand in the global skies.

The airline had initially planned to raise funds for the fleet acquisition through a capital market float - either in India or abroad.

Deliveries of these aircraft would start towards the end of 2006, with the last of the planes expected to be delivered in 2009.

"But with the markets still volatile, Jet has now decided to raise part of the funds from domestic banks and institutions. A loan of around $600 million has already been tied-up with SBI and negotiations are underway with some other institutions,"a source close to the development said.

A Jet Airways spokesperson confirmed the move saying: "We had approached SBI with a loan application for part-financing fleet expansion plan. This application has been accepted and cleared by SBI."

The spokesperson, however, refused to divulge the quantum of the deal. This would make it among the largest-ever local loan to be raised by the Jet Airways. The airline had recently raised $400 million (around Rs 1,800 crore) locally from ICICI Bank and IDFC to make pre-delivery payments for aircraft it is acquiring.

It had planned to float a $850 million GDR/ARD issue in March this year, which was put off in view of the global turmoil in the stock markets