Monday, February 1, 2010

Garuda Indonesia earn US$ 300 Million from IPO

The airline company - PT Garuda Indonesia – have a target to earn a ‘fresh funds’ US$ 200 million - US$ 300 million from the implementation of the initial public offering (IPO) in Indonesia Stock Exchange (BEI). Garuda Indonesia will appoint their underwriters on the IPO on this recent weeks.

Emirsyah Satar, president director of Garuda Indonesia, said the IPO funds will be used to increase the number of aircraft and expand the network coverage of Garuda Indonesia. "We will soon appoint the underwriters," said Emirsyah in a special interview with Bloomberg in Singapore, Monday (1/2/2010). Garuda Indonesia will become the second airline in Asia to sell its shares in the IPO for their business expansion in line with economic recovery in Asia from a global recession.

Survey of International Air Transport Association (IATA) said that on 2009, Asia took over the position of North America as the largest market for the world aviation industry. "There is optimism in the airline industry and therefore the interests of investors (for entry into the aviation industry) began to return," said Binit Somaia, Southeast Asia Center Director fos Asia Pacific Aviation, an aviation consulting agency based in Sydney. Somaia said, there is currently no sign of the airline industry would booming, but he was convinced the worst was over.

According to Giovanni Bisignani, IATA chief executive officer, the number of passengers using the aircraft in the Asia Pacific region in 2009 reached 647 million passengers, more than the number of passengers in North America reached 638 million. He added that there are approximately 217 million additional passengers who will fly in 2013.

The growth of the airline industry so rapidly which attract investment from the world's billionaires. Example, Wilbur Ross, who founded the budget airline in India and Richard Branson who opened a similar flight in Malaysia. Tiger Airways Holdings Ltd.., a budget airline owned by Singapore Airlines Ltd., last month offered its shares to the public through an IPO to fund their expansion.

This year, Garuda Indonesia would receive delivery of 23 Boeing 737 aircraft from Boeing Co.. Emirsyah also said, in the year 2014 Garuda will buy 90 Boeing 737 aircraft. This company had received an approval from the holders of bonds last month to restructure debt and pave the steps toward an IPO gate. In fact, Garuda plans IPO has been initiated since 1998. Garuda Indonesia target can double the number of its fleet to 103 aircraft in 2013, acquiring the local airline, and fly to several new destinations in Japan, South Korea, and Europe.

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