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China budget carrier Spring Airlines planning to go public in 2009 - report

Analysis

Beijing (XFNews-ASIA) - Budget carrier Spring Airlines Co Ltd expects to list in 2009 to fund its fleet expansion, the China Business News reported, citing the airline's chairman Wang Zhenghua.

Wang told the newspaper that the carrier is applying to regulators to buy 20 of the 150 A320 aircraft that China ordered in October during French President Jacques Chirac's visit to the country. It currently owns four A320s.

Spring Airlines will need about eight bln yuan for the planned aircraft purchase, said Wang, adding that a venue for the listing has not yet been decided.

He added that the company is expected to complete a private placement in 2008, with Citibank Group as a likely financial investor.

Wang said the carrier booked a net profit of over 20 mln yuan since starting flight operations in August 2005.

Spring Airlines is a subsidiary of privately-owned Spring International Travel Services Co, one of the largest travel agencies in China.

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