Garuda Indonesia plans to raise $300 million through its initial public offering (IPO), which will be launched in the middle of this year.
"We have not determined the underwriter yet, but it will definitely be launched in the second or third quarter this year," says the airline's CEO Emirsyah Satar.
Garuda has not decided on the size of the stake it will offer, but it will be up to 40%, he adds.
In the meantime, the airline is close to completing its debt restructuring process, says Satar.
"All debt has been restructured, and we just have one more agreement to sign with the European Credit Agency, which will happen by 25 February," he adds.
The airline has embarked on a five-year plan to expand its network and increase its fleet size.
It expects to take delivery of 23 Boeing 737-800 aircraft and one A330-200 aircraft this year. All new aircraft will feature a new interior cabin, with personal in-flight entertainment systems for all seats in business and economy class, says Satar.
The airline plans to add 10 new domestic routes this year and increase frequencies on its services to Singapore and Hong Kong, he adds.
"These new aircraft will support our expansion plans which are in line with our strategy to increase the number of domestic departures by over 150% to 2,072 per week and international departures more than threefold to 1,222 a week by 2014," says Satar.
Garuda will retire 13 737s this year, and will operate a fleet of 76 aircraft at the end of the year, he adds. The airline has said it wants to double its fleet of 67 aircraft to 116 by 2014.
It plans to launch a daily service between Jakarta and Amsterdam via Dubai from June, and hopes to start more services to Europe, such as to Frankfurt and Rome among other cities.
Source: Air Transport Intelligence news
