Jet gets shareholder nod to raise capital

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Jet Airways shareholders have approved the airline's plan to raise up to $400 million in additional capital.

The carrier did not say how this capital would be raised in its Bombay stock exchange filing, but Indian media reports suggest that a qualified institutional placement is likely, and that Jet has asked the country's Foreign Investment Promotion Board (FIPB) for permission to sell shares to foreign investors. Indian law restricts severely restricts foreign ownership of the country's airlines.

Jet posted a net loss of 2.25 billion Indian rupees ($46 million) for its fiscal first quarter, versus a net profit of 1.43 billion Indian rupees a year before. Revenues for the three months to 30 June fell by 26% to 20.85 billion rupees because of "lower yields due to intense competition and overcapacity in the market".