Jet defers AoA amendment,Etihad nominees to wait

Carrier gets shareholders' nod to sell 24 stake to Etihad

The shareholders of Jet Airways on Friday approved a 24 per cent stake sale to Etihad. However,a proposal seeking a proportionately higher representation for the Abu Dhabi-based carrier on Jets board may have to wait for longer,as the notice regarding the adoption of a new set of articles of associations AoAs had to be deferred.

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Sources said that the resolution to amend the AoAs was deferred due a fear that market regulator Securities and Exchange Board of India Sebi and competition watchdog Competition Commission of India may topple the deal. The airline,however,said that it has not yet received anything in writing from Sebi on the issue of AoA amendment.

The deferment of new set of AoAs at the companys extraordinary general meeting EGM on Friday has delayed the entry of three Etihad representatives,including Etihad Airways CEO James Hogan and CFO James Rigney on Jets board. Jet had earlier said it was proposing to modify the existing AoA to reflect the shareholders agreement between its promoters and Etihad.

These amendments included Etihad-nominated directors on Jets board not being liable for any default or failure of the company in complying with the provisions of any applicable laws. Stating the benefits of the deal,Jet Airways chairman Naresh Goyal said his strategic alliance with the Gulf carrier would improve Jets profitability and bring down operating costs. Etihad investment will help us to deleverage and grow in a sustainable manner. The commercial agreement with Etihad will help us to expand network,reduce costs and increase profitability, said Goyal.

As part of the deal,Etihad will acquire 24 per cent stake in Jet Airways for about Rs 2,058 crore. The deal marks the first investment by a foreign carrier in an Indian airline since the change in the countrys FDI policy last September.

Meanwhile,Jet Airways net loss for the fourth quarter of the last fiscal widened to Rs 495.5 crore from Rs 298 crore during the same period last year on account of high fuel prices and weak rupee. Jet also saw a decline in revenue,which fell from Rs 3,990 crore from Rs 4,092 crore. Its cost during rose on account of rising aircraft lease costs and a one-time expense on salary arrears. Jet shares declined by 3.69 per cent to Rs 562.20 on the BSE.

8216;Etihad deal will bring down companys debt to 1.5 bn8217;

Jet Airways on Friday said its 24 per cent stake sale to the Etihad will bring down its debt to 1.5 billion from the current 2.1 billion.

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The deal will also help us bring down our current debt of 2.1 billion to 1.5 billion, Jet Airways senior vice-president for commercial finance and investor relations,KG Vishwanath told the company shareholders at an extraordinary general meeting EGM convened to seek approval the stake sale deal with

Etihad Airways.

Vishwanath said that of the total 2.1 billion debt,700 million is on account of working capital which has been borrowed at high interest rates while the remaining 1.4 billion is an aircraft-related loan.

SpiceJet Q4 loss narrows

SpiceJet narrowed its net loss to Rs 185.71 crore for the fourth quarter ended March 31,2013,as compared to a loss of Rs 249.17 crore during the same period last year on the back of an increase in income from operations.

For the financial year ended March 2013,the carriers net loss stood at Rs 191 crore against a loss of Rs 606 crore in the preceding year.