Jet Airways said to seek $300m funding for expansion

Jet Airways India, the carrier part-owned by Etihad Airways, is seeking to raise about $300m to fund expansion on international routes, people with knowledge of the matter said. Jet Airways has started talks on a potential equity fundraising from investors other than Etihad, the people said, asking not to be identified because the information is private. The company, which has a market value of 41.9brupees ($619 million), aims to sell stock at a premium to its current share price, according to one of the people. The market share of Jet Airways has fallen in the past four years as the number of local carriers almost doubled to 11, according to data from the aviation regulator. “New dynamics are emerging, which could see Jet Airways seeking funds outside of Etihad and could include strategic investors,” Kapil Kaul, South Asia CEO at CAPA Centre for Aviation, said Wednesday. “However, valuation will remain a challenge.” Jet Airways faces competition from domestic carriers including SpiceJet, flag carrier Air India and IndiGo airline as it seeks to expand in the world’s fastest-growing aviation market. Discussions on the fundraising are at a preliminary stage, and there’s no certainty they will result in a transaction, one of the people said. <br/>