Jet Airways, India's largest privately-owned airline, has approached the US Exim Bank and European export credit agencies to reschedule a $2 billion loan (Rs 10,000-crore) loan that was raised to buy 27 Boeing and eight Airbus aircraft.
With Arvind Jadhav, principal secretary, in the department of infrastructure development of the Karnataka government, emerging as the frontrunner in the race to replace Raghu Menon as the chairman and managing director of the state-owned National Aviation Company of India Ltd (Nacil), which runs Air India, informed sources said Menon lost the coveted job because of his opposition to the airline's proposed joint venture with Singapore Airport Terminal Services (SATS).
Jet Airways and Kingfisher Airlines said they found it unnecessary to shell out an extra Rs 10 crore for the new terminal, especially since they would have to shift to the new integrated terminal -- T3 -- in less than a year. T3, when it begins functioning in March 2010, will be an integrated terminal for all operators. Kingfisher, Kingfisher Red and IndiGo have already started operations from the new T1D terminal, while Jet Airways, JetLite and SpiceJet are yet to shift.
After failing to get bids for over half of its highway projects last year, the National Highways Authority of India (NHAI) has decided to put up 19 highway projects worth Rs 23,805 crore for rebidding next month through a new short-listing process.
Though the family controls and runs DLF, CFO Ramesh Sanka is said to be playing a key role in mapping the group's future strategy -- including the move to, now, construct lower-cost housing.
State Bank of India has agreed to lend Vodafone-Essar, the joint venture between United Kingdom's Vodafone and Essar, Rs 10,000 crore to finance the company's entry into 3G (third generation) telecom services and expansion of its broadband operations.
A severe squeeze on margins has prompted leading international airlines such as Virgin Atlantic, Sri Lankan Airlines, Austrian Airlines, Delta, KLM, Syrian Airlines, Aeroflot, All Nippon Airways, Singapore Airlines, Lufthansa and Finnair to withdraw over 100 flights in the last six months.
With the Indian Railway Catering and Tourism Corporation pushing electronic booking of tickets and scores of online travel portals entering the business, the share of tickets sold online in the total ticket revenues of the railways has doubled to nearly 30 per cent this year.
Kingfisher, Jet and state-owned Air owe Rs 4,000 crore to oil companies and airports. Dues to the Airports Authority of India, private airports and oil companies IOC, BPCL and HPCL were to have been cleared by March 31, under the government's mandate. Industry figures show that the three airlines are collectively projected to make operating losses of Rs 5,000 crore.
DIAL, the GMR-led consortium modernising Delhi airport, had projected it would get only a Rs 800 crore-Rs 1,000 crore deposit for the entire 45 acre land in the hospitality district, leaving a gap in funding for the modernisation plan. The aviation ministry allowed it make up the shortfall by levying an ADF on passengers. With DIAL managing to persuade bidders for the hospitality district to increase security deposits by close to 50 per cent, the ADF may now be reduced.
The company had invested around Rs 1,500 crore in the business; may exit at Rs 1,100 crore.
Differences have cropped up between the civil aviation ministry and Delhi International Airport Ltd (DIAL) over the closure of the airport's main runway.
The funds are needed to meet losses for the next two years, sources said. The channel, which was launched in April 2008, earns around Rs 2 crore (Rs 20 million) a month and incurs an operating monthly cost of Rs 7.25 crore (Rs 72.5 million). As a result, its monthly loss is about Rs 5 crore (Rs 50 million), translating into an annual loss of around Rs 60 crore (Rs 600 million), sources said.
Many travel companies said customers are waiting and watching. "People are holding on to see if better deals come their way. So although advanced bookings are down, we might see people booking during the summer months themselves," said Richa Goel Sikri, director of Delhi-based STIC Travels.
"The airlines failed to respond to the falling market. While there was a cut-down in capacity by around 25 per cent in September, the airlines brought back the flights starting from January and replenished capacity in all sectors. So we have a clear case of oversupply," said DP Singh, general manager, corporate planning, AAI.
The Satyam board may present prospective bidders for the troubled Satyam Computer Services with operating statements for two quarters - October-December 2008 and January-March 2009 - to help them arrive at a decision.
The CEOs met late last month to discuss the agreement. Industry experts said one advantage would be the fact that GoAir was looking at increasing its fleet to 20 aircraft by 2011. "If SpiceJet acquires the airline, it will gain access to slots for the aircraft orders which it can sell," said an industry expert. Selling order slots has emerged as a lucrative revenue stream for several Indian airlines that are feeling the pinch of falling passenger traffic.
Global IT giant IBM is understood to be the front-runner to acquire Satyam Computer Solutions, a company it named as one of its main competitors in a filing to the New York Stock Exchange in February. The US major, said sources close to the developments, has begun discussions with Satyam's government-nominated board and expressed its desire to acquire a majority stake in the company. A team of investment bankers and lawyers from the US and Europe has been brought in.
RIL's merger with RPL will mean non-issue of treasury stock worth Rs 26,000 crore, which means less headroom to raise funds. Since no treasury stock is going to be created, RIL will issue 69.2 million shares to RPL's ordinary shareholders. As a result, RIL's paid-up capital will increase to only Rs 1,643 crore from the present Rs 1,574 crore. This, in turn, will enhance the earning per share proportionately for RIL shareholders.
© 2025 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances