Spring Airlines announced plans to delay its planned IPO on the Shanghai Stock Exchange from 2011 to 2012 as it attempt to get a higher valuation as the global economy recovers (Dow Jones, 07-Dec-2010). The Shanghai-based carrier had already delayed the planned listing from 2009 due to poor market conditions and significantly reduced travel demand. Chairman Wang Zheng-hua, announcing the decision, said: "We don't want to sell shares at a cheap valuation." He added that the company will use internal resources to finance its aircraft expansion plan. The airline plans to take delivery of seven to eight aircraft in 2011 yo supplement its fleet of 21 A320s.
Spring Airlines to delay IPO to 2012
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Spring Airlines seeks to redefine itself in a more crowded Chinese LCC market
The company folklore of the Chinese low cost carrier Spring Airlines has become entrenched in aviation history, with photos of Spring staff on duty trips sharing hotel rooms while eating instant noodles.
For the Chinese market this thriftiness, and regular candid interviews with billionaire founder Wang Zhenghua, became synonymous with the growing number of budget flights on Spring Airlines. The public became educated about China's only notable LCC, which was markedly different from the cookie cutter format of full service domestic airlines.
But the spectrum of airlines in China is widening and Spring, now under the leadership of Stephen Wang, needs to reassert its position in the Chinese market.
Mr Wang addressed CAPA's Americas Aviation Summit in Orlando in Apr-2017. There are new LCCs and airlines transitioning to LCCs with different service levels, making Spring wonder if it should be an "ULCC". The reality of a government orchestrated market means Spring needs to consider widebody operations for domestic trunk routes, and possible long haul flying. Spring also needs to diversify its presence: its home hub of Shanghai is high yielding but this has invited envy, and an aviation hub overhaul could mean that LCCs are moved to a new and remote third airport in Shanghai.
The CAPA airline fleet quiz: 15 challenging questions. CAPA Summit Singapore 2/3 March
Test your knowledge of the global aircraft fleet with this CAPA Quiz. If you have access to the comprehensive CAPA Fleet Database, it should be a breeeeze.
Rank your result:
15/15 = Outstanding! – you should set up your very own aircraft leasing company.
13-14/15 = Excellent – your colleagues should say the word ‘wiki…’ in front of your first name around the office.
10-12/15 = Very good – someone should shout you several drinks at the next air finance gathering.
9 or below/15 = Time to brush up – you need to sign up for CAPA's Fleet Database immediately.
Visit http://capaevents.com/AFFS17 for the answers