Spring Airlines to delay Shanghai IPO but reiterates need for financial for fleet expansion

Spring Airlines Chairman, Wang Zhenghua, stated the carrier plans to delay its planned Shanghai IPO from 2010 until 2011 or 2012, as the private carrier awaits improved market conditions (Reuters, 16-Mar-2010). He added that he remains committed to an IPO in the domestic market to fund the carrier's fleet expansion plans, adding that the carrier needs an "astronomical" amount of funding to increase its fleet from the current 17 aircraft to up to 100 aircraft by 2015, of which half are planned to be purchased. Mr Wang also reiterated an estimate from 2006 that the airline could have a market capitalisation of CNY8 billion (USD1.2 billion).

Spring Airlines: "An IPO is a must for us. I am very confident of the airline market but we need an astronomical amount of money," Wang Zhenghua, Chairman. Source: Reuters, 16-Mar-2010.