MIRA INFORM REPORT

Report Date :

20.01.2007

IDENTIFICATION DETAILS

Name :	JET AIRWAYS (INDIA) LIMITED
Registered Office :	SM Centre, Near Marol Naka, Andheri Kurla Road, Andheri (East), Mumbai – 400 059, Maharashtra
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	01.04.1992
Com. Reg. No.:	11-66213
CIN No.:	U99999MH1992PTC066213
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. At present, it is quoted below offer price to the public.
Line of Business :	Domestic Airline operations in India on main Trunk routes.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small

Maximum Credit Limit :	--
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Exist
Comments :	Subject is an established company in aviation industry. It’s proposed merger with another private airlines Sahara failed and subject incurred substantial loss and invited a lot of litigation. Due to fierce competition, the company’s profit margin is under severe pressure. The company can be considered normal for business dealings at usual trade terms and conditions with slight caution.

LOCATIONS

Registered/ Head Office :	SM Centre, Near Marol Naka, Andheri Kurla Road, Andheri (East) Mumbai – 400 059, Maharashtra, India
Tel. No.:	91-22-28505080/4271/5627/5628/5629
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
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
Name :	Mr. Yash Raj Chopra
Designation :	Director
Name :	Mr. Shah Rukh Khan
Designation :	Director
Name :	Dr. Pierre J. Jeanniot
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
Name :	Mr. Narendra Mehra
Designation :	Company Secretary
MANAGEMENT :
Name :	Mr. Wolfgang Prock-Schauer
Designation :	Chief Executive Officer
Name :	Mr. Saroj K. Datta
Designation :	Executive Officer
Name :	Mr. Dale Moss
Designation :	Chief Operating Officer
Name :	Mr. Garry Kingshott
Designation :	Chief Commercial Officer
Name :	Mr. Carl Saldanha
Designation :	Chief Financial Officer
Name :	Mr. Raja Parthasarathy
Designation :	Executive Vice President – Finance
Name :	Ms. Anita Goyal
Designation :	Executive Vice President – Marketing and Sales
Name :	Capt. Werner Borchert
Designation :	Vice President – Flight Operations
Name :	Mr. Sepp Heinrich
Designation :	Vice President – Technical
Name :	Mr. Sitham Nadarajah
Designation :	Vice President – Technical (Projects)
Name :	Capt. Ray Heiniger
Designation :	Vice President – Flight Operations
Name :	Capt. Gustav Baldauf
Designation :	Vice President – Flight Operations
Name :	Mr. B. P. Baliga
Designation :	Vice President – Support Services
Name :	Capt. K. Mohan
Designation :	Vice President – Flight Operations (Special Projects)
Name :	Mr. P. K. Sinha
Designation :	Vice President – Passenger Sales
Name :	Dato' K. Jeyakanthan
Designation :	Vice President – Engineering Services
Name :	Mr. Poh Leong Choo
Designation :	Vice President – Inflight and Catering Services
Name :	Mr. Prasun Sengupta
Designation :	Vice President – Corporate Administration
Name :	Ms. Nandini Verma
Designation :	Vice President – Corporate Affairs and Public Relations
Name :	Mr. N. Hariharan
Designation :	Vice President – Office of the Chairman
Name :	Mr. Rajesh Sharma
Designation :	Vice President – Controller
Name :	Mr. Ashok Barimar
Designation :	General Counsel and Vice President – Legal
Name :	Ms. Ragini Chopra
Designation :	Vice President – North India
Name :	Mr. Gaurang Shetty
Designation :	Vice President – Marketing
Name :	Ms. Sonu Kripalani
Designation :	Vice President – Passenger Sales (India)
Name :	Mr. Sarat Chandran
Designation :	Vice President – Human Resources and Development
Name :	Mr. Anind Datta
Designation :	Vice President – Purchase and Properties
Name :	Mr. V. Raja
Designation :	Vice President – Asia Pacific
Name :	Mr. Mike Johnson
Designation :	Vice President – Engineering and Maintenance

MAJOR SHAREHOLDERS

Category	No. of shares	% of shareholding
Promoters' holdings
Promoters	69067205	80.00%
Persons acting in concert	553	0.00%
Non promoter's holdings
Institutional Investors
Mutual Funds and UTI	2503189	2.90%
Banks, Financial Institutions and Insurance Companies	1898779	2.20%
FIIs	9074567	10.51%
Others
Private Corporate Bodies	966268	1.12%
Indian Public	2632049	3.05%
NRIs / OCBs	58492	0.07%
Any Other	132909	0.15%
TOTAL	86334011	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 :

About 8815

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

v DBS Bank Limited

v Kotak Mahindra Bank Limited

v Dena Bank

v Canara Bank

Facilities :

PARTICULARS	31.03.2006 (Rs. in millions)
SECURED LOANS
From Banks	1660.200
(Loans from Banks are secured by hypothecation of Stocks, Debtors & Movable Fixed Assets other than Aircraft and/or by lien on Bank Deposits))
From Financial Institutions	400.000
(Secured by hypothecation of Simulator & other accessories thereto)
Total	2060.200

PARTICULARS	31.03.2006 (Rs. in millions)
UNSECURED LOANS
Short Term Loans: -- From Banks	5947.800
Other Loans : -- From Banks -- From Financial Institutions	16928.200 4250.000
From Others : -- Outstanding Hire Purchase / Finance Lease Instalments (Instalments due within one year Rs. 2079.100 millions, previous year Rs. 2784.100 millions)	19669.800
Total	46895.800

Banking Relations :	--
Auditors 1 :	Deloitte Haskins and Sells Chartered Accountants,
Address :	12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai – 400 018, Maharashtra, India
Auditors 2 :	Chaturvedi and Shah Chartered Accountants
Address :	Laxmi Towers, “A” Wing, Bandra-Kurla Complex, Mumbai – 400 051, Maharashtra, India
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		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		863.300	863.300	1419.177
2] Reserves & Surplus		22195.500	19238.300	3934.993
4] (Accumulated Losses)		0.000	0.000	(1180.128)
NETWORTH		23058.800	20101.600	4174.042
Subordinated Debt		0.000	3341.100	3080.775
LOAN FUNDS
1] Secured Loans		2060.200	600.000	603.433
2] Unsecured Loans		46895.800	25707.300	28415.657
TOTAL BORROWING		48956.000	26307.300	29019.090
DEFERRED TAX LIABILITIES		3206.600	1948.500	507.450
TOTAL		75221.400	51698.500	36781.357
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		21224.800	26086.300	31115.966
Capital work-in-progress		26656.700	320.200	151.901
INVESTMENT		1872.300	15957.300	2334.164
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4052.500	3325.200	3474.355
	Sundry Debtors	4331.500	2523.100	2344.375
	Cash & Bank Balances	21042.500	12242.400	3704.020
	Loans & Advances	11348.800	2353.300	1798.801
Total Current Assets		40775.300	20444.000	11321.551
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	10656.200	7731.700	7776.776
	Provisions	4651.500	3377.600	365.449
Total Current Liabilities		15307.700	11109.300	8142.225
Net Current Assets		25467.600	9334.700	3179.326
TOTAL		75221.400	51698.500	36781.357

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover [including other income]	61354.700	44201.700	35657.394
Profit/(Loss) Before Tax	7222.600	5821.300	1781.425
Provision for Taxation	2702.200	1901.400	150.330
Profit/(Loss) After Tax	4520.400	3919.900	1631.095
Export Value	13726.600	6058.200	4465.922
Import Value	1420.500	1103.200	4990.330
Total Expenditure	54132.100	38380.400	33875.969

QUARTERLY RESULTS

PARTICULARS	30.06.2006 [1^st Quarter]	30.09.2006 [2^nd Quarter]
Sales Turnover	16465.400	16150.400
Other Income	322.200	2061.900
Total Income	16787.600	18212.300
Total Expenditure	15852.900	17392.400
Operating Profit	934.700	819.900
Interest	642.400	578.100
Depreciation	887.400	966.900
Tax	22.800	40.200
Reported PAT	(449.800)	(551.300)

2006-06 Quarter 1

Expenditure Includes Employees Remuneration and Benefits Rs 2290.80 million Aircraft Fuel Expenses Rs 5858.50 million Commission Rs 1547.60 million Other Selling & Distribution Expenses Rs 512.30 million Other Operating Expenses (incl. aircraft lease rentals) Rs 5643.70 million Tax Includes Current Tax (included Wealth Tax) Rs 2.70 million Deferred Tax Rs(168.10)million Fringe Benefit Tax Rs 20.10 million.

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt Equity Ratio	2.02	3.47	72.01
Long Term Debt Equity Ratio	1.87	3.47	72.01
Current Ratio	1.61	1.39	1.45
TURNOVER RATIOS
Fixed Assets	1.24	0.89	0.75
Inventory	15.43	12.76	10.02
Debtors	16.61	17.82	15.07
Interest Cover Ratio	2.65	3.29	1.46
Operating Profit Margin (%)	18.39	29.80	27.16
Profit Before Interest and Tax Margin (%)	11.26	19.27	12.22
Cash Profit Margin (%)	11.45	19.57	18.45
Adjusted Net Profit Margin (%)	4.31	9.04	3.51
Return on Capital Employed (%)	10.90	20.70	11.69
Return on Net Worth (%)	12.60	42.87	320.74

STOCK PRICES

Face Value	Rs. 10.00
High	Rs. 718.00
Low	Rs. 704.00

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 its 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.

Employee Remuneration and Benefits :

Expenses pertaining to Employee Remuneration and Benefits increased by 51.4% from Rs. 3747 million in Fiscal 2005 to Rs. 5672 million in Fiscal 2006. This increase reflects increases in salaries and benefits, as well as the increase in average headcount from 7082 during Fiscal 2005 to 8285 during Fiscal 2006. To meet operational requirements in Fiscal 2006, the Company employed expatriate pilots on short-term contracts, which also contributed to the increase in payroll and related costs.  

Selling and Distribution Costs :

Selling and Distribution Costs increased by 38.4% from Rs. 5591 million in Fiscal 2005 to Rs. 7740 million in Fiscal 2006. This increase is attributable to: 

1] increase of 29.7% in costs related to Computerised Reservation Systems (CRS) and Global Distribution Systems (GDS) from Rs. 1036 million in Fiscal 2005 to Rs. 1344 million in Fiscal 2006 essentially due to the increase in the number of passengers; 

2] increase of 34.3% in commission costs paid to General Sales Agents (GSAs) and travel agents from Rs. 4208 million in Fiscal 2005 to Rs. 5653 million in Fiscal 2006. This was due to the increased passenger revenues and revised productivity-based incentives given to travel agents. The increase was partly offset by an agreement to reduce the overriding commission paid to our General Sales Agent (GSA) in India from 3% to 2% for passenger revenues and from 2.5% to 2% for cargo revenues with effect from 1st April, 2005; and 

3] increase in advertisement expenses incurred in Fiscal 2006, which was in part due to advertising for the launch of international operations to Singapore, London (Heathrow) and Kuala Lumpur. 

Aircraft Rentals :

Aircraft Rentals increased by 118.5% from Rs. 1986 million in Fiscal 2005 to Rs. 4340 million in Fiscal 2006, due to the induction of more leased aircraft during Fiscal 2006; including wide-bodied aircraft for long-haul international operations. This was offset to a small extent by the reduction in lease rentals negotiated with lessors at the time of renewal of leases of certain aircraft. 

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

Its 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:

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.

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.

The company’s fixed assets of important value include:

Plant and Machinery

Furniture and Fixtures

Electrical Fittings

Data Processing Equipment

Office Equipment

Ground Support Equipment

Vehicles

Aircraft and Spare Engine

Leased Aircraft

Leased Property

Simulator

Software

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 specialized 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 Sri Lankan 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) Limited

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.

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 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. 44.30
UK Pound	1	Rs. 87.61
Euro	1	Rs. 57.61

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		36

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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