SpiceJet CEO, Sanjay Aggarwal, in an interview with the Economic Times, stated the carrier is “looking at opportunity to raise capital from the market”, adding, “the number would be in the neighbourhood of $50-75 million”.
The LCC plans to invite proposals from aircraft manufacturers by Mar-2010 before formally placing an aircraft order, which would be sized to create “measured and profitable” growth.
The LCC also expects to register a profit in FY2009/10 - its first since commencing commercial operations - after reporting a 25% jump in yields since Sep-2009. SpiceJet’s shares fell 2.7% on Monday.
Tiger has market capitalisation of USD564 million
Tiger Airways stated its offering price for shares has been fixed at SGD1.50 per share (or the middle of its expected range), raising SGD247.7 million (USD178 million), following the close of its IPO on 18-Jan-2010. The carrier stated the pricing would mean it has a market capitalisation of SGD781.3 million (USD563.7 million).
Azul expects profitability in 2010
Elsewhere, Brazilian LCC, Azul Linhas Aereas Brasileiras SA, stated it is likely to be profitable in 2010. The LCC handled 2.2 million passengers in its first year of operation, with Founder and Chairman, David Neeleman, adding that he believes Azul is the first airline to carry more than 2 million passengers in its first 12 months of operations.
Ryanair CEO, Michael O’Leary, in an interview with the Irish Independent, stated the LCC has had a “difficult year” in 2009, adding that “earnings are down; traffic is up; fares are down; profits are down." Looking forward, Mr O’Leary predicts more bankruptcies across the travel industry. Ryanair’s shares gained 0.7% yesterday.
For more analysis, please see The Centre’s landmark Global LCC Outlook Report.
Selected LCCs daily share price movements (% change): 18-Jan-2010
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