Institutional invest-ors are flocking back to the aviation sector. After mon-ths long futile efforts to raise funds, three leading domestic airlines — Jet Airways, SpiceJet and Kingfisher Airlines have hit the market once again to raise funds.

While SpiceJet is close to raising $100 million, Jet is hoping to raise $150-200 million — all through qualified institutional placement (QIP).

An investment banker familiar with SpiceJet’s move said the airline has almost sewed up the QIP.

Kingfisher is also hoping to raise funds, either through private equity or QIP. It had received shareholders’ nod to raise $100 million.

On December 24, Jet Airways received clearance from the Cabinet Committee on Economic Affairs (CCEA) to raise $400 million from investors through QIP. The proposal was made to the Foreign Investment Promotion Board (FIPB), which referred it to the cabinet.

Jet needed to induce fresh equity to service an estimated long-term debt of Rs 11,500 crore, and short-term debt of Rs 3,500 crore. It reported a loss of Rs 406.7 crore in the second quarter (July-September), up from Rs 384.5 crore loss in the same period last year.

A Mumbai-based investment banker said the aviation sector is slowly beginning to buzz, with the fortunes turning around. “The October-December period has turned out to be an excellent quarter in terms of passenger traffic and occupancy. Some airlines are already talking about enhancing capacities,” he said, adding that there is a marked improvement in the confidence level.

An aviation analyst with domestic brokerage said that Jet Airways is in a better position to raise funds because of its financial condition and reputation among investors. On the flip side, Kingfisher’s parent UB Group has been providing collaterals to raise funds for the airline.

He however said Kingfisher might succeed in raising $100 million, but would come at a high cost. “In case of Jet Airways, it is expected to raise around $150-200 million. Since it is expected to report profit in this quarter on the back of its low-cost service Jet Airways Konnect, it will raise funds at low interest rates.”

Due to the presence of global investor Wilbur Ross in SpiceJet, investors are willing to invest money in the no-frills airline.

SpiceJet is expected report profit by the end of the current financial year on the back of improved occupancy, according to the airline.