BANK OF AMERICA MERRILL LYNCH on JET AIRWAYS

We have raised our FY10-FY12 EBITDAR estimate by 2-3.5% on better visibility of continued strong traffic growth. The focus on the low cost arm Jet Konnect and route rationalization have enabled Jet to post its strongest passenger growth in last 3 years. For the month of November, Jet Airways recorded a 33% growth in passenger traffic, in the domestic sector (industry growth 29.8%) and 19% in the international segment. For FY11, Jet is expected to show strong 15% passenger growth (earlier 14%) in the domestic sector. Jet Airways is expected to post strong passenger growth numbers and yields in the month of December on the back of ongoing holiday season. This should enable Jet to breakeven for the first time in the last seven quarters. Maintaining our target multiple, our price objective increases to Rs 600.