Merpati Nusantara Airlines plans to conduct a share sale in 2018 following a restructure which is expected to improve the airline’s performance and increase its attractiveness to investors. According to reports by The Jakarta Globe, the airline also plans to modernise and expand its fleet from 23 to 27 aircraft in 2012 while adjusting its network over 2013/14. Once Merpati reaches its improved earnings target between 2015 and 2017, Indonesia’s Government will be able to sell its stake privately or publicly through an initial public offering (IPO).
Merpati looking to conduct share sale in 2018
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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.
India is also a market of interest for Indigo. However, the firm is not interested in North Asia at this point, despite that region's much lower LCC penetration rate. Australia is also not of interest as it is already mature.