Garuda Indonesia expects solid passenger growth to stay strong; $400 mln capex plan | Insider company data
(Insider Stories)-State-owned airline operator PT Garuda Indonesia (GIIA) expects solid growth to continue this year after strong gains in passenger numbers and revenue last year, and is preparing bond and share issues to support a planned up-to-$400 million capex budget.
Garuda targets an increase in its fleet to 139 aircraft from 106 last year, with around 35 units for its low-cost carrier PT Citilink Indonesia, and plans to open new international routes to London, Brisbane and Penang, the company says.
It expects passenger numbers to grow 15%-20% from last year’s 20.42 million, and will issue rupiah-denominated bonds worth IDR2 trillion in the second quarter of 2013 and release up to 10% of its shares through a rights issue in the second half of this year, CEO Emirsayh Satar said in a press conference.
Funds raised from the bond and share sales will be used for the group’s business expansion. CEO Emirsjah Satar said the company also plans to release 20% of shares of its maintenance subsidiary PT GMF Aerowisata through an IPO at the end of 2013.
Highlights of 2012 financial results:
Revenue of US$3.47 billion rose 12.1% from 2011
Net profit grew 72.6% to US$110.84 million
Passenger numbers grew grew 19.6% to reach 20.42 million
Load factor rose to 75.9% from 75.2%
Fleet size rose to 106 aircraft with average age of 5.8 years, including 22 new units, compared with total 87 units last year
Frequency was 1,940 flights compared with 1,750 to 34 domestic and 19 global destinations
