Garuda's IPO debuted on the Indonesia Stock Exchange on 10-Feb-2011 (The Jakarta Globe, 10-Feb-2011). President director of state brokerage firm and lead underwriter Danareksa Sekuritas, Marciano Herman, stated: “Garuda’s IPO went smoothly according to our plan and procedures. It is successful by our own standards.” Bahana would absorb USD33.6 million and Danareksa would absorb USD22.4 million, while Mandiri Sekuritas was successful in selling its shares as it deals with a number of institutional investors. Foreign agents UBS and Citigroup reportedly failed to sell most of the shares set aside for foreign investors. Total proceeds from the IPO are expected to be USD532 million, though reports said the total default order would be approximately USD58 million.
Garuda's IPO debut was 'smooth'
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Airline disruption: it will happen in the next decade - but no one is preparing for it
Why so unprepared? It seems inconceivable that the structure of an industry with so many artificial constraints can remain intact much past 70 years, while all around it has changed.
This decade alone has been witness to major disruptions in the travel and transportation industries. Most prominent have been in ride sharing – Uber – and in hospitality – Airbnb. Telecommunications, media and music industries have also been turned on their heads; banks and payments are in the firing line; retail generally is being rapidly transformed. There is scarcely an industry whose fundamental structure remains intact. Except the airline industry.
In all cases disrespectful startups, usually applying relatively simple but sophisticated IT solutions, have taken on legacy operations. The legacy industries under attack typically involve extensive capital investment, and are often characterised by significant, unhelpful, and highly intrusive government regulation that restricts competition.
Certainly the legacy airlines have had to deal with a new breed of low cost operations, long and short haul. But almost without exception those legacy operators are still there, fundamentally unchanged.
In terms of other industries, this is no more than fiddling around the margins. And time is running out.
Southeast Asia Fleet Outlook:
Southeast Asia, along with the Middle East, are the only two regions with as nearly as many aircraft on order as in the active fleet. Southeast Asian airlines currently have nearly 1700 aircraft on order compared to an active fleet of approximately 1800 aircraft.