MIRA INFORM REPORT

Report Date :

11^th May 2006

IDENTIFICATION DETAILS

Name :	JET AIRWAYS (INDIA) LIMITED
Registered Office :	SM Centre, Near Marol Naka, Andheri Kurla Road, Mumbai-400059, Maharashtra, India
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	1^st April, 1992
CIN No.:	U99999MH1992PTC066213
Com. Reg. No.:	11-66213
TAN No.: (Tax Deduction & Collection Account No.)	MUMJ00366C / MUMJ06594A / MUMJ05793ES
Legal Form :	A Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Domestic Airline operations in India on main Trunk routes.

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 80000000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a reputed private airline having satisfactory track. Available information indicates high financial responsibility of the company and its' management. Trade relations are reported as fair. General financial position is satisfactory. Payments are reported as correct and as per commitments. The company can be considered good for normal business dealings.

LOCATIONS

Registered Office :	SM Centre, Near Marol Naka, Andheri Kurla Road, Mumbai-400059, Maharashtra, India
Tel. No.:	91-22-28505080
Fax No.:	91-22-28560622
E-Mail :	info@jetairways.com vijayw@vsnl.com corporate@jetairways.com
Website :	http://www.jetairways.com http://www.aspl.jetairways.com
Head Office :	S. M. Centre, Andheri – Kurla Road, Andheri (East), Mumbai – 400 059, Maharashtra
Tel. No.:	91-22-28505080/4271/5627/5628/5629
Fax No.:	91-22-28560622
E-Mail :	vijayw@vsnl.com
Branches :	Located at:- Y Mumbai, Maharashtra Y Ahmedabad, Gujarat Y Goa Y Kochi, Kerala Y Kolkata, West Bengal Y Mangalore, Kerala Y Bangalore, Karnataka Y Hyderabad, Andhra Pradesh Y Chennai, Tamilnadu Y Coimbatore Y Delhi

DIRECTORS

Name :	Mr. Naresh Goyal
Designation :	Chairman
Name :	Mr. Ali Ghandour
Designation :	Director
Name :	Mr. Victoriano P. Dungca
Designation :	Director
Name :	Mr. Charles A. Adams
Designation :	Director
Name :	Mr. J. R. Gagrat
Designation :	Director
Name :	Mr. Javed Akhtar
Designation :	Director
Name :	Mr. I. M. Kadri
Designation :	Director
Name :	Mr. P. R. S. Oberoi
Designation :	Director
Name :	Mr. Aman Mehta
Designation :	Director
Name :	Dr. Vijay L Kelkar
Designation :	Director
Name :	Mr. S. G. Pitroda
Designation :	Director
Name :	Mr. Saroj K. Datta
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Naresh Goyal
Designation :	Chairman (Non Resident Indian)
Date of Birth/Age :	64 years
Experience :	32 years
Name :	Mr. Steve Forte
Designation :	Chief Executive Officer

MAJOR SHAREHOLDERS

Category	No. of shares	% of shareholding
Promoters' holdings
Promoters	69,067,205	80.00%
Persons acting in concert	553	0.00%
Non promoter's holdings
Institutional Investors
Mutual Funds and UTI	820,097	0.90%
Banks, Financial Institutions and Insurance Companies	140,472	0.10%
FIIs	11,196,366	12.90%
Others
Private Corporate Bodies	1,275,697	1.40%
Indian Public	3,677,980	4.20%
NRIs / OCBs	78,251	0.00%
Any Other	77,390	0.00%
TOTAL	86,334,011	100.00%

BUSINESS DETAILS

Line of Business :

Domestic Airline operations in India on main Trunk routes.

GENERAL INFORMATION

Suppliers :

• Air Works India – For repairs
• Ansett, Australia – For Engineering
• American Airlines – ‘Saver’ – Reservation System
• General Electric Capital Aviation Inc., USA – For Aircraft lease.

No. of Employees :

460

Bankers :

v Abu Dhabi Commercial Bank Limited

Rehmat Manzil, 75 – B Veer Nariman Road, Mumbai – 400038

Tel : 91-22-22839509

Fax : 91-22-22870686

v Barclays Bank Plc

21/23 Maker Chambers VI, Nariman Point, Mumbai – 400021

Tel : 91-22-56387114

Fax : 91-22-56387184

v Calyon Bank

Hoechst house, 11^th Floor, nariman Point, Mumbai – 400021

Tel : 91-22-56319000

Fax : 91-22-56351813

v Citibank N.A.

7^th Floor, Plot C – 61, Bandra Kurla Complex, G – Block, Bandra, Mumbai 400051.

Tel : 91-22-26535029/5030

Fax : 91-22-26535861/5862

v Corporation Bank

Veena Chambers

21 Dalal Street, Mumbai – 400023

Tel : 91-22-22671715

Fax : 91-22-22672101

v Deutsche Bank AG

Kodak House, 222, Dr. D.N. Road, Fort, Mumbai – 400001

Tel : 91-22-22061050/22070692

Fax : 91-22-22072966/22067322

v HDFC Bank Limited

Ground Floor, Maneckji Wadia Building (Kalpataru Heritage), Nanik Motwani Marg, Fort, Mumbai – 400023

Tel : 91-22-24902961

Fax : 91-22-24963994

v The Hong Kong and Shanghai Banking Corporation

52/60, Mahatma Gandhi Road, Mumbai – 400001

Tel : 91-22-22681020

Fax : 91-22-22653812

v ICICI Bank Limited

Free Press House, 215, Nariman Point, Mumbai – 400021

Tel : 91-22-22818077/26536457/35

Fax : 91-22-26531233

v IDBI Bank Limited

Mittal Tower, ‘A’ Wing, Nariman Point, Mumbai – 400021

Tel : 91-22-22824057/65

Fax : 91-22-22824071

v ING Vysya Bank Limited

Mittal Tower, ‘A’ Wing, Nariman Point, Mumbai – 400021

Tel : 91-22-22882616/ 56666419

Fax : 91-22-22818558

v Standard Chartered Bank

90 Mahatma Gandhi Road, Mumbai – 400001

Tel : 91-22-22683575

Fax : 91-22-22624912

v State Bank of India

Overseas Branch, World Trade Centre, Cuffe Parade Mumbai – 400005

Tel : 91-22-22181518/ 22189161

Fax : 91-22-22188343/8741

v UTI Bank Limited

1^st Floor, Jamnabhoomi Bhavan, jamnabhoomi Marg, Fort, Mumbai – 400005

Tel : 91-22-22835782/84/86/87/88

Fax : 91-22-22844113

Facilities :

PARTICULARS	31.03.2005 Rs. in millions
SECURED LOANS
From Financial Institutions	600.000

Banking Relations :	Satisfactory
Auditors :	C. C. Chokshi & Company Chartered Accountants
Associates/Subsidiaries :	Ø Tailwinds Limited Ø Jet Air Skyline Transport Private Limited Activity - Travel, Ticketing and C & F business Ø Jetair Private Limited Ø Jet Enterprises Private Limited Ø Jet Airways LLC Ø Jet Aieways of India Inc Ø Jetan Tours Private Limited Ø Vimpal Holding Private Limited Ø International Cargo Carriers Private Limited Ø National Travel Services

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
130,000,000	Equity Shares	Rs. 10/- each	Rs. 1300.000 millions
70,000,000	Preference Shares	Rs. 10/- each	Rs. 700.000 millions
	Total		Rs. 2000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
86,334,011	Equity Shares	Rs. 10/- each	Rs. 863.340 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004	31.03.2003
SHAREHOLDERS FUNDS
1] Share Capital		863.300	1419.177	1419.177
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		19238.300	3934.993	5468.005
4] (Accumulated Losses)		0.000	(1180.128)	(2811.223)
NETWORTH		20101.600	4174.042	4075.959
Subordinated Debt		3341.100	3080.775	2840.733
LOAN FUNDS
1] Secured Loans		600.000	603.433	2005.361
2] Unsecured Loans		25707.300	28415.657	32978.164
TOTAL BORROWING		26307.300	29019.090	34983.525
DEFERRED TAX LIABILITIES		1948.500	507.450	507.450
TOTAL		51698.500	36781.357	42407.667
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		26086.300	31115.966	34799.364
Capital work-in-progress		320.200	151.901	3007.865
INVESTMENT		15957.300	2334.164	597.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3325.200	3474.355	3404.752
	Sundry Debtors	2523.100	2344.375	2230.583
	Cash & Bank Balances	12242.400	3704.020	4722.365
	Loans & Advances	2353.300	1798.801	1708.640
Total Current Assets		20444.000	11321.551	12066.340
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	7731.700	7776.776	7862.619
	Provisions	3377.600	365.449	200.283
Total Current Liabilities		11109.300	8142.225	8062.902
Net Current Assets		9334.700	3179.326	4003.438
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		51698.500	36781.357	42407.667

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Sales Turnover [including other income]	44201.700	35657.394	29391.069
Profit/(Loss) Before Tax	5821.300	1781.425	(2456.378)
Provision for Taxation	1901.400	150.330	(11.877)
Profit/(Loss) After Tax	3919.900	1631.095	(2444.501)
Export Value	NA	4465.922	4420.996
Import Value	NA	4990.330	8568.959
Total Expenditure	38380.400	33875.969	31847.447

QUARTERLY RESULTS

PARTICULARS	30.06.2005 [1^st Quarter]	30.09.2005 [2^nd Quarter]	31.12.2005 [3^rd Quarter]	31.03.2006 [4^th Quarter]
Sales Turnover	13105.200	12796.400	14782.500	16253.000
Other Income	348.400	446.000	207.800	3442.600
Total Income	13453.600	13242.400	1,4990.300	1,9695.600
Total Expenditure	10314.300	10598.900	1,2370.500	1,4395.800
Operating Profit	3139.300	2643.500	2619.800	5299.800
Interest	604.600	562.800	618.600	629.800
Gross Profit	2534.700	2080.700	2001.200	4670.000
Depreciation	983.400	972.900	1047.100	1060.400
Tax	142.300	110.400	344.000	805.000
Reported PAT	953.400	685.900	610.100	2271.200

200506 Quarter 1 –

Notes Expenditure Includes Employees Remuneration and Benefits Rs 1109.40 million Aircraft Fuel Expenses Rs 3478.40 million Commission Rs 1303.10 million Selling & Distribution Expenses Rs 770.30 million Other Operating Expenses (incl. aircraft lease rentals) Rs 3653.10 million Tax Includes Provision for Current Tax (incl Wealth Tax) Rs 130.90 million Deferred Tax Rs 455.60 million Fringe Benefit Tax Rs 11.40 million EPS is Basic Status of Investor Complaints for the quarter ended June 30, 2005 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 1376 Complaints disposed off during the quarter 1376 Complaints unresolved at the end of the quarter Nil 1. The results for the quarter ended June 30, 2005 have been subjected to a limited review by the Statutory Auditor, and the same were considered by the Audit Committee and taken on record by the Board of Directors at their meeting held on July 20, 2005. 2. In view of the seasonality of the business, the financial results for the quarter ended are not indicative of the full year's performance. 3. As proposed in the Offer Document, during the quarter the Company has partly used the IPO proceeds for prepaying the Subordinated Debt and certain aircraft loans. Pending utilisation of balance funds, as at June 30, 2005 the same have been invested in liquid mutual funds and fixed deposits with bank. 4. The Company is operating in a single business segment i.e. Air transportation and as such all business activities revolve around this segment. Hence there is no reportable segment as required by AS-17 on Segment Reporting'' issued by the ICAI. 5. The Board of Directors at their meeting held on May 17, 2005 had recommended a dividend @ 30% on the Equity shares capital of the Company for the financial year ended March 31, 2005. 6. The figures for the previous quarter and comparative figures for the previous year have been regrouped/restated wherever necessary.

200509 Quarter 2 –

Notes: Expenditure Includes Employees Remuneration and Benefits Rs 1240.50 million Aircraft Fuel Expenses Rs 3996.40 million Commission Rs 1111.70 million Other Selling & Distribution Expenses Rs 185.40 million Other Operating Expenses (incl. aircraft lease rentals) Rs 4064.90 million Tax Includes Provision for Current Tax (incl Wealth Tax) Rs 90.40 million Deferred Tax Rs 311.50 million Fringe Benefit Tax Rs 20.00 million EPS is Basic Status of Investor Complaints for the quarter ended September 30, 2005 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 172 Complaints disposed off during the quarter 172 Complaints unresolved at the end of the quarter Nil 1. The results for the quarter & half year ended September 30, 2005 have been subjected to a Limited Review by the Statutory Auditor, and the same were reviewed by the Audit Committee and taken on record by the Board of Directors at their meeting held on October 29, 2005. 2. In view of the seasonality of the business, the financial results for the quarter ended are not indicative of the full years performance. 3. The details of the Utilisation of the net IPO proceeds are as stated below: Utilisation as projected in the prospectus date February 28, 2005 Repayment of debts and redemption of CCRPS Rs 7921.00 million Capital Expenditure Rs 4601.00 million General Corporate purposes Rs 2483.50 million Total Rs 15005.50 million Actuals as on September 30, 2005 Repayment of debts and redemption of CCRPS Rs 5575.70 million Capital Expenditure Rs 345.10 million General Corporate purposes Rs 772.00 million Total Rs 6692.80 million Pending utlization of the balance fund as at September 30, 2005 same have been invested in liquid mutual fund & fixed deposits with Banks. 4. During the quarter flood - related disruption from July 26-August 03, 2005 resulted in cancellation of 656 flights due to which the Company had to incur a one time extra cost of Rs 35.20 million which is charged off under respective heads of expenses. Management estimates that there was an additional Rs 114.40 million notional loss due to the above. These figures have not been reviewed by the Auditors. 5. The Company is operating in a single business segment i.e. Air Transportation and as such all business activities revolve around this segment. Hence there is no reportable segment as required by AS-17 on 'Segment Reporting' issued by the ICAI. 6. The figures for the previous quarter and half year and comparative figures for the previous year have been regrouped/restated wherever necessary.

200512 Quarter 3 –

Notes EPS is Basic Status of Investor Complaints for the quarter ended December 31, 2005 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 102 Complaints disposed off during the quarter 102 Complaints unresolved at the end of the quarter Nil 1. The results for the quarter & nine months ended December 31, 2005 have been subjected to a Limited Review by the Statutory Auditor, and the same were reviewed by the Audit Committee and taken on record by the Board of Directors at their meeting held on January 21, 2006. 2. In view of the seasonality of the business, the financial results for the quarter ended are not indicative of the full year's performance. 3. The details of the Utilisation of the net IPO proceeds are as stated below: As projected in the prospectus date February 28, 2005 Repayment of debts and redemption of CCRPS : Rs 7921.00 million Capital Expenditure : Rs 4601.00 million General Corporate purposes : Rs 2483.50 million Total : Rs 15005.50 million Actuals as on December 31, 2005 Repayment of debts and redemption of CCRPS : Rs 5623.00 million Capital Expenditure : Rs 417.50 million General Corporate purposes : Rs 772.00 million Total : Rs 6812.50 million Pending utlization of the balance fund as at December 31, 2005 the same have been invested in liquid mutual fund. 4. The Company is operation in a single business segment i.e. Air Transportation and as such all business activities revolve around this segment. Hence there is no separate primarily reportable segment as required by AS 17 on Segment Reporting issued by the ICAI. 5. Provision for taxation includes Current Tax, Deferred Tax and Fringe Benefit Tax 6. The Company has at its Board meeting held on January 19, 2006 considered and approved, subject to receipt of regulatory approvals, the acquisition of 100% of the fully - paid equity shares capital of Sahara Airlines Ltd for an all cash consideration. 7. The figures for the previous quarter & nine months period ended December 31, 2004 and comparative figures for the previous year ended March 31, 2005 have been regrouped / restated wherever necessary.

200603 Quarter 4 –

Notes EPS is Basic Status of Investor Complaints for the quarter ended March 31, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 40 Complaints disposed off during the quarter 40 Complaints unresolved at the end of the quarter Nil 1. The audited financial statements have been taken on record by the Board of Directors at their meeting held on April 29, 2006. There are no qualifications in the Auditors report for these period. The information presented above is extracted from the audited financial statements as stated. 2. The Company has changed the amortisation period in respect of the Landing Rights, acquired for an infinite period, from ten to twenty years considering the Industry practice. As a result of this change, the amortisation for the year is lower by Rs 12.10 million and the Profit for the year is higher by the same amount. 3. In the past, credits were taken from forward sales Account for unutilized tickets, where clams for refund were not made for twenty four months. From the current year due to various factors including complex pricing Structure, trend of utilization and the ticketing conditions, credits for unutilized tickets have, been taken from Forward Sales Account based on the historical statistics, data and Management's best estimates. As a result, the net income from Operations and Profit for the quarter / year ending March 31, 2006 in higher by Rs 427.90 million. 4. Other Income during the Quarter & Year ended March 31, 2006 includes, profit on Sale and Lease back of five Aircraft amounting to Rs 2706.40 million. 5. The validity of the Share Purchase Agreement'(SPA) entered into on January 18, 2006 for the acquisition of Sahara Airlines Ltd (SAL) has been further extended until June 21, 2006 pending receipt of 'the requisite, Regulatory approvals 6. The details of the Utilisation of the net IPO proceeds are as stated below: As projected in the prospectus date February 28, 2005 Repayment of debts and redemption of CCRPS : Rs 7921.00 million Capital Expenditure : Rs 4601.00 million General Corporate purposes : Rs 2483.50 million Total : Rs 15005.50 million Actuals as on March 31, 2006 Repayment of debts and redemption of CCRPS : Rs 7921.00 million Capital Expenditure : Rs 3389.70 million General Corporate purposes : Rs 1280.50 million Total : Rs 12591.20 million Pending utilization of the balance fund as at March 31, 2006 the same have been invested in liquid mutual fund and fixed deposits with bank. The Company has reclassified the utilization of fund during the quarter. 7. The Company is operation in a single business segment i.e. Air Transportation and as such all business activities revolve around this segment. Hence there is no separate primarily reportable segment as required by AS 17 on Segment Reporting issued by the ICAI. 8. The figures for the previous quarter & comparative figures for the previous year have been regrouped / restated wherever necessary. 9. the Board of Directors have recommended a dividend @ 60% on the equity share Capital of the Company (i.e. Rs 6/- per Equity share) for the year ended March 31, 2006

KEY RATIOS

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Debt Equity Ratio	3.47	72.01	28.54
Long Term Debt Equity Ratio	3.47	72.01	28.54
Current Ratio	1.39	1.45	1.57
TURNOVER RATIOS
Fixed Assets	0.89	0.75	0.78
Inventory	12.76	10.02	8.94
Debtors	17.82	15.07	13.71
Interest Cover Ratio	3.29	1.46	0.04
Operating Profit Margin (%)	29.80	27.16	16.82
Profit Before Interest and Tax Margin (%)	19.27	12.22	0.36
Cash Profit Margin (%)	19.57	18.45	7.96
Adjusted Net Profit Margin (%)	9.04	3.51	(8.50)
Return on Capital Employed (%)	20.70	11.69	0.28
Return on Net Worth (%)	42.87	320.74	(427.96)

STOCK PRICES

Face Value	Rs. 10.00/-
High	Rs. 966.00/-
Low	Rs. 945.00/-

LOCAL AGENCY FURTHER INFORMATION

History:

Subject was incorporated on 1^st April, 1992 at Mumbai in Maharashtra having Company Registration Number 66213 as a private limited company under the Companies Act, 1956. the Company became a deemed public limited company on 1^st July, 1996 and was converted into a private limited company on 19^th January, 2001. the company became a public limited company on 28^th December, 2004.

Subject commence the operations as an Air Taxi Operator on 5^th May, 1993 with a fleet of four leased Boeing 737 aircraft. They were granted scheduled airline status on 14^th January, 1995.

At the time of incorporation of the company, its shareholders were Mr. P.V.V. Chalam and mrs. Anita Goyal. These shares were transferred to Tail Wi9nds on 12 May, 1994, and Mr. Naresh Goyal holds them on behalf of Tail Winds in terms of RBI approval letter No. EC.BY.CO. (S) 250/2251/TS/93/94 dated 30^th December, 1993.

Subject currently provide regular scheduled services to 42 destinations in India and two destinations outside India, operating 1924 flights weekly. Its aircraft fleet has grown from four aircraft in 1993 to currently 42 aircraft comprising 34 Boeing 737 aircraft and eight ATR 72-500 aircraft. They have also accepted delivery of one additional Boeing 737-800 aircraft, which will be included in to services after it is refurbishing and upon receipt by them of final DGCA approval to operate the aircraft.

Business:

Subject is engaged in Domestic Airline operations in India on main Trunk routes.

Generic Names of the Principal Products/Services of the company are:-

Ø Passenger Services

Ø Cargo

Ø Excess Baggage

Subject has the following aircrafts in its' service.

Aircraft	No. of services
B 737-800	9
B 737-700	10
B 737-400	10
ATR 500	6

Subject covers the following routes:-

• Mumbai-Delhi
• Mumbai-Kolkata
• Mumbai-Goa
• Mumbai-Hyderabad
• Mumbai-Mangalore
• Mumbai-Bangalore
• Mumbai-Coimbatore
• Mumbai-Chennai
• Delhi-Jammu
• Delhi-Guwahati-Bargoda

Subject started its operations on 5^th March, 1993.

It purchases it’s requirements 100% from international market against Contract, Cash or L/C terms.

It sells 84.73% in local market and 15.27% in international market against Cash or L/C terms.

It imports from U.S.A., Australia and Singapore.

Subject operates over 225 flights daily to 44 destinations across the country. The rapid expansion of the route network has earned the prestigious Air Transport World Award 2001 for market development.

It has 7 Nos. of Boeing 737-300 & 300 services of which 2 are owned and 5 are wet leased and also owns 5 Nos. of 50 senter Air-crafts, and 7 Nos. of ATR – 72 Air-crafts.

Operations

Overview :

The commendable financial performance of the Company reflects the continued growth of domestic travel within India, propelled by a buoyant economy, and increased tourist traffic both domestic and international. The number of revenue passengers carried by the Company increased from 6.91 million to 8.14 million, an increase of 17.9%. The Company's increased profitability reflects both increase in yields and revenues as well as control in costs despite the increase in Aviation Turbine Fuel costs. This has been reviewed in detail in the Management Discussion and Analysis.  

Subject has alliances with some of the best airlines, hotels and car rental services such as :

Ø The Park Hotels

Ø The Oberoi Group

Ø The Leela Hotels and Resorts

Ø Radisson Hotels and Resorts Worldwide

Ø AVIS

Ø Citibank

Ø KLM Royal Dutch Airlines

Ø Northwest Airlines

Ø British Airways

The company has entered into tie up for Interline agreement with 12 International Airlines to fly their passengers in India. Some of them are British Airways, KLM Royal Dutch Airlines, Northwest Airlines, Air-Canada, Malaysian Airways, Swiss Air, Delta, Gulf Air, etc.

Subject is the first Indian airline to receive the World Travel Market Global Award, the world's premier global travel event in London. It has also won the H & FS Domestic Airline of the year Award twice.

Subject has received the following Awards

February, 2004	Subject won all three awards, instituted during the year by “feBusiness Traveller”, viz for “Best Business Class”, “Best Economy Class” and “Best Service (Airport and Inflight)’, in the Domestic Airline Category.
December, 2003	Subject won the first ever Galileo-express Travel and Tourism Award for “India’s Best Domestic Airline” for the year 2003.
August, 2003	Subject was declared a “Superbrand” by the world’s leading authority on branding, the Superbrands Council.
May, 2003	Subject awarded the Boeing Company Award for maintaining “Best Technical Despatch Reliability” for 2002, in view of maintaining technical despatch reliability in excess of 99% during the calendar year 2002.
February, 2001	Air Transport World's Market Development Award
March. 2000	H & FS – Best Domestic Airline of the year 1999 for excellence in hospitality
January, 2000	Vocational Excellence Award by Rotary Club of Mumbai North End
December, 1998	H & FS – Best Domestic Airline of the year 1998 for excellence in hospitality
November 5 to 8, 1998	The International Brand Summit
1996-97	Best Airline of the year 1996-97 Award conducted by IATA Agents Association, Calicut, Tamilnadu
November 20 & 22, 1997	Best Domestic Airline Award for Service Excellence – Key to Competitiveness
September 18 & 21, 1997	H & FS Award by The Rangaswamy Tourism Foundation associated wit the Karnataka State Tourism Development Corporation
December 13, 1996	Best Domestic Airline of the year for excellence in hospitality
November 12, 1996	The World Travel Market Global Award by Reed Exhibition Companies in conjunction with Trav Talk for contribution to travel and tourism in the respective media sponsor regions worldwide
October 24, 1996	The Great Management Show Award for punctuality, safety, quality of service and customer orientation
September 12, 1996	Citibank Diners Club Blue Moon Award for Service Excellence
October 17, 1994	Service Excellence Award at an International seminar called "Global Managers in Jurassic Park" hosted by Global Managers.

SOME KEY EVENTS

The chronology of some key events since the company was incorporated on 1^st April, 1992 is as follows :

April 1, 1992	Incorporated as a Private Limited Liability company.
May 5, 1993	Commence the operations as an Air Taxi Operator
April 4, 1994	First Airline in India to operate the Boeing 737-400 aircraft.
January 14, 1995	Granted scheduled airline status
December 30, 1996	First private airline in India to execute purchase agreement for Boeing aircraft.
November 12, 1997	First private airline in India to acquire its own aircraft using US EXIM guarantee.
September 16, 1998	First private airline in India to fly Boeing 737 NG aircraft
October 6, 1998	First private airline in India to fly ATR 72-500 aircraft.
July 1, 2000	Introduced “Jet Mobile”. An online system that provides flight schedule updates to passengers on their mobile phones.
February 5, 2001	Won the prestigious Air Transport World’s Market Development Award.
April 22, 2002	30 millions passengers flown since commencement of operations.
May 14, 2003	First airline in India to operate the Boeing 737-900 aircraft.
March 23, 2004	Commenced operations to Colombo, Sri Lanka.
May 14, 2004	Commenced operations to Kathmandu, Nepal

It’s major customers include Individuals, Government Bodies and all types of passengers.

Object of the company

Subjects main objects as contained in their Memorandum of Association are:

v To established, maintain, operate and provide safe, efficient, economical and properly coordinated air transport services and lines of aerial conveyance (including scheduled and chartered domestic and international services) for the carriage of passengers, baggage, mail and freight.

v To purchase, take on lease and/or hire or otherwise acquire, own, employ, maintain, work, manage, control, let on hire, charter, lease, demise all forms of aerial conveyance for the purpose of transporting or carrying passengers, baggage, mail and freight, and merchandise of all and every kind and description, whether as principals, agents or otherwise on national and international routes.

The main objects clause and objects incidental or ancillary to the main object of the Memorandum of Association of the company enable them to undertake their existing activities and the activities for which the funds are being raised through this offer.

Subject operates from caption owned registered office well furnished which is situated in a commercial area.

Subject operated from caption rented administrative office premises of area admeasuring 400 sq.ft. which is located in commercial area.

Subject employs 460 persons in its’ set up consisting of 72 persons in office and 388 others.

Press releases

Should you ride this Jet?

15 March 2005

No, says Rex Mathew* to the medium to long term investor; it is a very high-risk speculator's stock at its current price.

Those who did not apply for the high profile Jet Airways IPO and those who applied but did not get a good allotment must be ruing a lost opportunity. The stock opened for trading yesterday and surprised even diehard optimists closing above Rs1,300 — a gain of almost 18 per cent. Some investors could, perhaps, be considering buying the stock even now after yesterday's strong showing. Should they?

Granted, the civil aviation market in India is booming and has one of the fastest growth rates in the world. Granted again that Jet has a dominant market share in the domestic market. And yes, agreed, Jet has one of the fattest operating margins among all airlines in the world. But should one be a buyer at Rs1,300 per share or more than 20 times next year's projected earnings?

The answer, logically becomes evident in a dispassionate dissection of the sector Jet operates in and its own stock. First, let us look at the positives for the stock:

v Civil aviation in India can be safely expected to continue its growth momentum in the foreseeable future.

v Jet has a very strong brand and its service delivery matches global standards.

v Jet has a large number of peak hour slots at metro airports and therefore will continue to enjoy pricing power for such flights. New airlines will not get these prime slots till the airports increase capacity.

v Jet is very strong in the business travel segment, which is not as price sensitive as leisure travel.

v The company will shortly mount flights to East Asia, Europe and the US.

v The stock offers the only option to stock market investors who desire an exposure to this fast-growing sector, if one excludes Royal Airways which is planning to start SpiceJet.

Now the negatives:

v Jet is a full service airline. Low-cost carriers are rapidly gaining market share the world over and would become dominant players in due course. It will not be easy for Jet to convert itself into a low-cost carrier, if it decides to, without compromising its brand equity. The other option of launching a separate brand for low-cost operations would entail additional investments.

v The domestic market will see a good number of low-cost carriers in the near future. At least three of them, Kingfisher, SpiceJet and the one being promoted by Wadias of Bombay Dyeing will be strong players. Along with Air Deccan, they will provide serious competition to full service carriers like Jet. In future, expect global majors like Virgin and EasyJet to enter the domestic market as both have publicly stated their interest in India.

v Though Jet dominates the peak hour traffic from metros, this will not last forever as airports expand and start offering additional slots for other airlines.

v The other two full service carriers, Indian Airlines and Air Sahara, already have aggressive fleet expansion plans. Jet was able to gain market share from Indian Airlines partly because the aircraft acquisition programme of the state owned airline was stuck for almost 15 years. IA will add new aircraft starting next year. Sahara, under Rono Dutta former president of US Airways, has vastly improved service delivery and will offer tough competition in the business travel segment.

v Both IA and Sahara will have much more flexibility in pricing as they are not listed entities who have to worry about quarterly numbers. Once they have the additional aircraft, expect prices to go down further thereby reducing operating margins.

v Entry of new players in an industry like aviation, which requires specialised skills, would push up personnel costs. There is already a shortage of pilots in the industry. Expect it to worsen in future.

v Fuel is a major component of the operating costs of an airline. With crude prices very close to their all time highs, fuel prices will be increased in April. Worse still, oil analysts do not expect crude price to fall much from current levels in the foreseeable future. A further increase in oil prices is expected to ground many airlines across the globe.

v Jet could have expanded into smaller cities and developed them as a buffer against declining margins in the metro sector. But it has been slow in seizing this opportunity unlike Air Deccan, which has taken the lead. Air Deccan is connecting smaller markets not serviced by other airlines and is expanding rapidly by acquiring smaller turbo-prop aircraft.

v Jet's overseas forays will take a long time to break even, let alone make a profit. To start the operations, it will have to lease wide-bodied aircraft at the current high rates. The segments it is entering are highly competitive, serviced by large established airlines as well as price warriors. Many of these airlines can afford to drop prices only to kill new entrants. One can fly SriLankan to most Far East destinations from Delhi and back via Colombo for under Rs10,000, hotel accommodation at Colombo included.

v Jet does not have any major expansion plans for the domestic market. According to Jet's chairman himself, the airline would expand capacity by 10 to 15 per cent over the next few years. So there is a very real risk of Jet focusing its energies in stabilising the international routes while competitors eat into domestic market share.

No denying that Jet is an efficient and well-managed company. It is reasonably certain that the company will remain profitable in the short to medium term even in the face of increased competition and all the risks detailed above. But it is also reasonably certain that one or two years from now it will be extremely difficult for Jet to maintain, if not improve, the profit margins it is enjoying now. And there in lies the problem. The stock is just too over-priced as profitability can at best remain static, if not decline. For a medium to long term investor there are enough equally good and some even better stories in the market at far lower valuations.

Naresh Goyal wins ‘Star of Asia’ award

18 Nov 2005

Close on the heels of bagging the Economic Times ‘Emerging Company of the Year’ award Mr. Naresh Goyal, Chairman, Jet Airways has bagged the ‘Star of Asia’ award instituted by the Business Week a leading magazine published from United States of America, Europe and Asia.

Along with Mr. Naresh Goyal, Founder–Chairman of Jet Airways India Limited other Indians who won the award are ICICI Bank chief executive KV Kamath, Council for Scientific and Industrial Research (CSIR) director general R Mashelkar and Petroleum Minister Mani Shankar Aiyar.

The Indians are among the 25 Asians who were presented the award ‘Stars of Asia’ in a glittering function in Beijing, Republic of China, on November 16, 2005 by Mr. George Bush, former President of the United States.

On winning this honour, Mr. Goyal said, “It is truly rewarding to be recognized in the category of Global Managers, with so many Asian business houses emerging as global conglomerates. I owe this to each and every member of our staff and colleagues in junior, middle and senior Management levels, whose dedication, hard work, focus on the Customer and passion for service excellence, have given life to our vision.”

Other Asians who won the honour are Chen Tianqiao, Founder and Chief Executive, Shanda Interactive, China; Katsuhiko Machida, President, Sharp Corp., Japan; Katsuaki Watanabe, President, Toyota Motor Corp., Japan; Yin Yimin President, ZTE Corp., China and Ho Kwon Ping, Founder and Chairman, Banyan Tree Holdings, Singapore.

KV Kamath was recognized in the category of Financiers, R Mashelkar in the category of Innovators and Mani Shankar Aiyar in the category of Agenda Setters.

Naresh Goyal has had over 37 years of experience in the Civil Aviation industry. He is the recipient of several national and international awards. Some of them are ‘Entrepreneur of the Year Award for Services’ from Ernst & Young and also ‘Distinguished Alumni Award-2000 for meritorious and distinguished performance as an Entrepreneur’ and also the ‘most respected company in travel and hospitality sector’.

Other awards conferred on Mr. Goyal include the ‘Outstanding Asian-Indian’ award for leadership and contribution to the global community given by the Indian American Centre for Political Awareness, ‘Aerospace Laurels’ for outstanding contribution in the field of Commercial Air Transport twice, in April 2000 and February 2004. Recently he received the citation of ‘Emerging Company of the Year’ award of the Economic Times for Corporate Excellence.
Mr. Goyal has been elected to the Board of Governors of the International Air Transport Association (IATA), at its 60th Annual General Meeting held in Singapore in early June 2004. As part of the 31-member Board Mr. Goyal will serve a two-year term until the close of IATA’s 62nd AGM in June 2006. This is the first time that the Chairman of a private airline of India has been elected to IATA’s prestigious Board of Governors.

About Jet Airways (India) Ltd:
Jet Airways currently operates a fleet of 40 classic and next generation Boeing 737-400/700/800/900 aircraft, 3 A340-300 E aircraft and 8 modern ATR72-500 Turboprop aircraft. With an average age of a little over 4.6 years, the airline has one of the youngest aircraft fleet in the world. Approximately 24,000 passengers travel daily on Jet Airways' 285 flights to 48 destinations that span the length and breadth of India and beyond, including Colombo in Sri Lanka, Kathmandu in Nepal, Singapore, Kuala Lumpur in Malaysia and London Heathrow, UK. Since inception in May 1993 until end-October 2005, Jet Airways has flown over 57.2 million passengers.

Jet Airways operates 'Flight of Fantasy' for underprivileged youngsters on Children's Day

14 Nov 2005

Jet Airways once again operated its annual’ Flight of Fantasy’ for underprivileged children to celebrate ‘Children’s Day’. This special flight was operated in association with GE Elfun volunteers who sponsored the children from the Magic Bus organisation and Cancer Patients Aid Association (CPAA). Hindustan Petroleum Corporation Limited (HPCL) and Oberoi Flight Services were also partners for this event. In addition to this, children from the Tata Memorial Centre were invited for Jet Airways’ Flight of Fantasy.

Flight 9W5221 took off on Sunday, November 13, 2005 at 14:00 hrs from Terminal 1B of Mumbai’s Chatrapati Shivaji Airport. The flight duration over and around Mumbai lasted for approximately 45 minutes.

The wonderful experience began when the children were checked-in for this special flight at the airport. The group was then escorted to the Club Premier Lounge where light snacks and beverages were served courtesy of Oberoi Flight Services. There was an orientation of the airport building conducted by Jet Airways’ personnel. The sight of airplanes taking off and landing excited the young guests who were patiently explained the many facets of airline operations by Jet Airways’ staff.

These young passengers were then entertained by artists who had been specially brought in for the event. Furthermore, the children were enthralled to meet and interact with Bollywood Star Salman Khan who made a surprise entry at the Children’s Day celebrations. The children were then escorted to board Jet Airways’ next generation aircraft Boeing 737-800. Thus began their special tryst with the clouds on board Jet Airways.

The fuel for the flight was provided free of charge by Hindustan Petroleum Corporation Limited (HPCL).

The children thoroughly enjoyed this experience and were presented with Jet Kids Bags containing goodies sponsored by Jet Airways, GE Elfun Volunteers and HPCL.

This flight was amongst several similar Flights of Fantasy that Jet Airways has operated since commencing its operations in 1993, in support of the underprivileged children.

Magic Bus, is an NGO that teaches life skills to children at risk, through the medium of sports, creative expression and adventure activities. Cancer Patients Aid Association is an NGO which works with cancer patients, helping them to live a normal life and often funding the treatment they undergo for cancer.

GE Elfun Volunteers is a global organisation of GE Employees & Retirees committed to improving the communities, the company and their lives through volunteerism, leadership and camaraderie. GE Elfun volunteers serve as helpers, mentors, tutors and friends, making a difference in the lives of the less fortunate and under privileged in the community. Their core purpose is to create an extraordinary impact in social development within local and regional communities, adding values to lives, education and rehabilitation of less fortunate and resources optimisation in the partnered Non-Government Organizations.

Oberoi Airport Services, a unit of EIH Ltd (The Oberoi Group), operates Lounges and Restaurants at Mumbai, Kolkata, Chennai and Cochin Airports. It provides lounge services to First and Business class passengers of several Leading International and Domestic airlines.

Hindustan Petroleum Corporation Limited (HPCL), the second largest integrated refining and marketing oil company in India, has always realized the importance of looking beyond balance sheets and focusing on improving the Quality of Life of the lesser fortunate mortals. Through its network spread across the country, HPCL carries out a wide range of welfare activities aimed at the weaker sections of the society.

Jet Airways wins coveted award for 'Emerging Company of The Year' at The Economic Times Awards for Corporate Excellence

09 Nov 2005

Jet Airways (India) Limited was honoured with the ‘Emerging Company of the Year Award for 2004-2005 at a glittering function held on Tuesday, November 8, 2005 at the Hilton Towers, Mumbai. Mr. Naresh Goyal, Chairman, Jet Airways received the award from the distinguished Union Finance Minister Mr. P. Chidambaram.The announcement of this award was first made on November 4, 2005.

Accepting the Award and Citation, Chairman Naresh Goyal said, “I accept this Award on behalf of each and every member of our staff and colleagues in junior, middle and senior Management, whose dedication, hard work, focus on the Customer and passion for service excellence, have given life to our expressed vision.” Jet Airways has pioneered many services in the Indian Aviation industry, from Braille safety manuals for visually impaired passengers, to E-ticketing and Web Check-in. It holds the merit of being a fully IATA E-compliant airline in India for the past one and a half years.

The award is particularly significant at this crucial stage when Jet Airways is surging forward, in its endeavour to conquer the international market. Its services continue to respect and complement its passengers’ needs.

In continuation of the airline’s efforts to widen their network and reach, maximize automation and make air travel across international and domestic destinations an absolutely seamless process, Jet Airways, have always invested in a modern fleet for their international operations.

In addition to the Purchase Agreement with Boeing last month for the acquisition of 10 B777-300 ER aircraft, the airline has recently executed a Purchase Agreement for 10 Airbus A 330-200 aircraft with an option for 10 more. The first of these aircraft will fly in the Jet Airways livery in the first quarter of 2007. Jet Airways has also recently concluded Frequent Flyer Programme partnerships with international carriers such as Gulf Air and Qantas Airways thereby giving its passengers added value and benefits.
Jet Airways’ journey began with the announcement of the Open Skies policy by the government in 1992. By adhering to the simple philosophy of keeping costs low and continuously improving productivity and service standards, Jet Airways has become a global brand with market leadership in India. Earlier this year the company sold 20% of its equity through an IPO, raising about $444m.

Jet Airways and Qantas announce Frequent Flyer Programme Partnership

02 Nov 2005

Jet Airways and Qantas, have entered into a reciprocal relationship, allowing their frequent flyer programme members to earn and redeem miles when traveling with either airline, with effect from November 1, 2005.

The partnership with Qantas enables Jet Privilege members to earn and redeem their JPMiles across Qantas’ global network of 145 destinations in Australia and 39 other countries, thereby, further extending the reach of the JP programme.

As a partnership launch offer, both Jet Privilege and Qantas Frequent Flyer will offer their members the opportunity to earn double JPMiles and double points respectively when they take a flight on their new partner airline between November 1 and November 30, 2005.

Speaking on this partnership Gaurang Shetty, Vice President – Marketing, Jet Airways said, “This partnership with Qantas reinforces Jet Airways’ desire to add value to its JP programme through such strategic partnerships with global air carriers.” He further added, “Our commitment towards a high quality of service and efficient operations are values that Qantas shares with Jet Airways, making this a partnership, customers of both airlines will benefit from.”

Khursheed Lam, Manager - India and South Asia, Qantas said, “Jet Airways is an ideal partner for us in India, due to its superior understanding of the market and its leading share of the market. Also its high standards and wide reaching network make it a force to reckon with in the Indian subcontinent.”

Jet Airways link with Qantas comes just a fortnight after the announcement of a similar partnership between Jet Airways and Gulf Air.

Jet Airways announces frequent flyer programme partnership with Gulf Air

17 Oct 2005

Jet Airways has signed an agreement with Gulf Air, which allows members of the Jet Privilege (JP) programme to earn and redeem JP Miles, when traveling with their new partner airline. Moreover, elite tier Jet Privilege members can also enjoy premium privileges such as lounge access and extra baggage allowance among others, when they fly with Gulf Air. As this is a reciprocal relationship, members of Gulf Air Frequent flyer programme will also be able to earn and redeem miles, as well as enjoy special benefits when traveling on Jet Airways.

Jet Airways’ extensive network across the Indian subcontinent of over 280 daily flights together with Gulf Air’s 57 weekly services between India and the Gulf region, enables frequent flyers of both airlines to now enjoy a host of convenient connections offered by the two carriers.

To celebrate the launch of this new global partnership, Jet Airways’ Jet Privilege programme is offering its members an opportunity to earn Double JPMiles when they take a flight on Gulf Air between October 15 and November 15, 2005 and vice versa.

When asked for his opinion on Jet Airways’ increasing global affiliations, Gaurang Shetty, Vice President – Marketing, Jet Airways commented, “Global travel amongst our frequent flyers is at an all time high. As Jet Airways expands its network to newer international destinations, we are committed to ensuring that our frequent flyers get to enjoy the best of benefits and rewards, no matter where in the world they travel. Our partnerships with other global leaders in the airline industry, is a direct result of this desire.”

“We at Gulf Air see this new relationship as a perfect combination,” commented Louise Robertson, Manager Loyalty Programmes Gulf Air. “With Jet Airways’ youthful dynamism and Gulf Air’s experience, innovation and wide reaching network, this is a win-win partnership for our respective customers.”

CMT REPORT [Corruption, Money laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 45.05
UK Pound	1	Rs. 84.96
Euro	1	Rs. 57.98

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions