Nama : Chandra Itrawan
NPM : 11212581
Kelas: 4EA19
Lion Air Could Revive IPO in 2017 If
Indonesian Economy Picks Up: Founder i
Jakarta. Airline group Lion Air could go
public as early as next year if Indonesia’s economy recovers, its founder and
owner told Reuters, saying any listing was intended to improve transparency
before he plans to hand over management control in five years.
Last year,
weak market conditions forced the group, which operates budget flights
throughout Southeast Asia, to delay plans for a listing which would have taken
place in the first quarter of 2016.
Southeast
Asia’s biggest economy likely grew at its weakest pace since the global
financial crisis in 2015, hit by faltering consumption, rising unemployment and
weak commodity prices.
Lion Air
founder Rusdi Kirana said the company could revive the IPO plans in 2017 if
economic growth picks up this year. “However if 2016 is still flat, same as
2015, we will postpone,” he said in a recent interview.
In 2014,
Lion Air floated plans for an IPO to raise up to $1 billion, which would be
partly used for airport expansion.
Rusdi has
spent the past few years grooming Lion Air Chief Executive Rudy Lumingkewas as
well as a nephew as possible successors.
He said
opening the company to public shareholders would help “control” its management
after he leaves, adding: “I try to groom seeds to replace the old or current
management. If I have prepared them, I
can retire and they can lead this company.”
Lion’s
five airlines operate a combined fleet of more than 200 aircraft, mostly Airbus
A320s and Boeing 737s. The company has around 500 more aircraft on order, and
expects to take delivery of 40 aircraft this year.
While
growth in Indonesia remains constrained by its overcrowded airports, Lion Air’s
Malaysian and Thai affiliates are considering expanding services to South Asia,
China and Northeast Asia in 2016 and 2017, Kirana said.
Lion Air’s
affiliates were also looking into starting long-haul flights to Europe from
2020, Kirana added. He declined to give further details about any of these
plans.
The
airline has three Airbus A330 widebody jets that it uses on high-density
domestic routes, and will likely need more long-haul passenger aircraft if it
wants to fly to Europe.
Lion
mainly competes with flag carrier Garuda Indonesia at home, and affiliates of
Malaysia’s AirAsia as well as other Southeast Asian carriers including Singapore
Airlines and Malaysia Airlines.
Tipe : 1
If I have(V1) prepared them,
I can retire(V1) and they can lead this company
