Garuda Indonesia plans to float shares of its maintenance unit in the next few years (The Jakarta Globe, 28-Mar-2011). Finance director Elisa Lumbantoruan said: “The maintenance market is around USD750 million. Most of that is being tapped by foreign companies, compared to local companies’ market share, which is 20% of that.” Mr Lumbantoruan stated the carrier plans to publicly list Garuda Maintenance Facility AeroAsia in the next three to four years. Garuda plans to double its fleet to 150 by 2015.
Garuda Indonesia plans IPO in maintenance sector
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Indigo believes there could be room for a ULCC in the Southeast Asian market despite already intense competition and a huge LCC order book, because the LCCs now operating in this region are not true to the LCC model. Several Southeast Asian LCCs, including Tigerair, are owned by full service airline groups, leading to a dilution of the typical LCC model.
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