Page 22 - AAA JULY - AUGUST 2015 Online Magazine

FEATURE INDIGO

Going Public The purchase agreement for our 2011
order has secured a series of scheduled
deliveries from November 2015 to
India’s largest airline IndiGo files for share sale November 2023, subject to any delivery
advancements or deferrals which may
By Jay Menon be negotiated with Airbus

INDIA’S BIGGEST AND MOST PROFITABLE and regulatory requirements, acceptance efficiency in flight operations by avoiding
airline IndiGo is hoping to raise about $400 of requisite approvals, market conditions interruptions and delays.
million through sale of shares in an initial and other considerations, the draft It accounted for more than a third of
public offering as part of its attempts to swell prospectus adds. the total air traffic flying more than 2.8
fleet size and retain control of the country’s The issue will be managed by million passengers in May out of a total of
highly competitive aviation market. Citigroup, JPMorgan, Morgan Stanley, 7.1 million passengers flown by all Indian
InterGlobe Aviation Ltd., the owner of Barclays Bank, Kotak Mahindra and UBS carriers. It also flew to five international
the budget airline, has filed a Draft Red Securities. destinations including Dubai, Bangkok
Herring Prospectus with capital markets The airline is expected to utilize the and Singapore.
regulator - the Securities Exchange Board funds to purchase new aircraft and expand IndiGo is also the only major Indian
of India for its proposed IPO, to raise its current fleet of 95 Airbus aircraft. airline to be making money in the aviation
around 12.72 billion rupees (US$200 IndiGo has long been a leading customer market at the moment. It is estimated
million) via sale of fresh shares while of the European aircraft maker Airbus to have recorded a profit of $150 to $175
certain shareholders will also offer for Group NV and flies only the single aisle million during fiscal year that ended March
sale more than 30.14 million shares. Airbus A320 aircraft. Last year, the low- 31, 2015, according Centre for Asia Pacific
The shareholders selling existing cost carrier, placed a record order for 250 Aviation, Sydney-based aviation think tank
shares include travel entrepreneur Rahul Airbus aircraft valued at $25.7 billion.
Bhatia and former U.S. Airways Chief IndiGo, one of the two profit-making IndiGo Confirms Airbus Order
Executive Officer Rakesh Gangwal, who private airlines in India along with GoAir IndiGo, meanwhile has finalized its order
co-founded IndiGo back in 2006, according is faced with stiff competition from rivals for 250 Airbus A320neo aircraft, months
to the draft prospectus. including the recently-launched Vistara after uncertainties dogged the deal
“The equity shares offered through and Air Asia, Jet Airways, SpiceJet and following the expiry of the term sheet.
the issue are proposed to be listed on the state-owned Air India. On Aug. 15, on the ninth anniversary
Bombay Stock Exchange and the National But the airline has gained preference of IndiGo, the airline “firmed up” its
Stock Exchange,” it says. The proposed among its customers over recent years commitment to buy the 250 A320neo
IPO will be subject to applicable statutory by controlling costs and maintaining aircraft.
22 ASIAN AIRLINES & AIRPORTS JULY / AUGUST 2015 WWW.ASIANAIRLINES-AIRPORTS.COM