Garuda Indonesia to launch IPO on 40% of equity in 2010; expand fleet to 116 aircraft by 2014
Garuda Indonesia reportedly plans to outlay approximately USD100 million in capital expenditure in 2010 on new aircraft, while also fulfilling “other operational expenditure”, as part of the carrier’s five year expansion plan (The Jakarta Post, 10-Nov-2009). The carrier plans to increase its fleet from the current 67 aircraft to 116 by 2014, to strengthen and expand its regional network, allowing it to handle 27 million passengers. The carrier stated it still requires further capital to improve infrastructure. As a result, Garuda confirmed plans to launch an IPO on 40% of its equity in 1H2010, and is currently preparing for the launch (ANTARA News/Asia Pulse, 10-Nov-2009). Garuda expects to raise approximately USD300 million to USD400 million from the offering. The carrier has also set a minimum 10% growth target for net profits in 2009, and is confident it will be able to achieve its operational targets and report profits of USD397.5 million by 2014.
Garuda Indonesia: "We will increase our routes and our increase the number of flights from 1,700 times per week in 2009 to 3,000 times per week in 2014," Emirsyah Satar, CEO. Source: The Jakarta Post, 10-Nov-2009.