India's largest carrier by market share, Jet Airways has been advised to raise fresh capital in order to meet its payment obligations and also to fund the loss making low-cost JetLite branch of the company.

The company's auditors said that the new funding will be very important for the company if the company's accounts are to be prepared on a going-concern basis in future. The recommendations were given in the limited review report of Jet's quarterly financial results by auditors, Deloitte Haskins & Sells and Chaturvedi & Shah.

The report was filed by Jet Airways with the stock exchanges Monday. The report noted that the net worth of JetLite had declined. Jet has sad that it is confident that it will get new equity soon. The company is planning to raise $300 million in sale and leaseback of 40 aircraft owned by the company.

"We are in talks with leasing companies and are close to finalising sale and leaseback for the aircraft that are owned by Jet," said M Shivkumar, senior VP, finance, Jet Airways.

The Indian aviation sector is seeing a difficult quarter and the falling value of rupee has contributed t the worsening condition. Some domestic carriers have been asking the government to relax its terms to allow foreign firms to invest more freely in domes airlines. The opening of the sector to foreign airlines for investments will bring in much needed funds for cash strapped carriers like Jet, Kingfisher and others.