Indonesian air carrier Lion Group is planning an initial public offering (IPO) in 2016 and will use the proceeds to build an airport hub, vital for its future, its chief executive said, according to a report.
“We are already talking to the banks about an IPO and will use the money to build this hub. Now we are using our own money but hopefully by first quarter 2016, the company will do an IPO and will use the money partly for airport expansion,” said its chief executives Rusdi Kirana, in this report filed by the international wire agency Reuters.
The Jakarta-based carrier that launched operations in 2000, and is among the fastest growing airlines globally, placed orders for 234 new Airbus A320 fleet, last year. It has taken delivery of the first three aircraft (Airbus A320 single-aisle jets) this week.
The Lion Group operates three carriers – low cost Lion Air, full-service Batik Air and Indonesian domestic regional carrier Wings Air. It also has a minority 49% interest in Malindo Air. The group flies to more than 70 destinations in South East Asia.
The group plans to develop a new airport, at Lebak in South Jakarta, that can handle up to 50 million passengers, annually. The facility is slated to have four runways, including one that can accommodate the A380 superjumbo. The new airport is also expected to boost traffic, to and from West Asia.
The report further quoted Kirana as stating that within two years Lion Air is planning to have more aircraft than its current largest competitor – Air Asia (which, too, has ordered hundreds of new aircraft).