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SINGAPORE : Tiger Airways has said it expects to be ready for an Initial Public Offering by the end of this year, enabling the low cost carrier to raise funds for expansion.
That comment came from CEO Tony Davies at an industry event on Tuesday.
He declined to be drawn into a timeframe for the IPO, but said Tiger Airways was working at laying the foundation for such a share sale.
"At some point, it will be appropriate to consider raising a very large amount of equity for investment purposes and for aircraft. What we are trying to do is to set the foundation, so if the shareholders choose to go to the public market to raise money, to invest in aircraft, we're well-positioned to justify that," said Davies.
"As we scale up and take more aircraft, we should be in a position by the end of 2007. The business has got the right foundations. If the shareholders want to consider some sort of public offering, we've created the right environment to facilitate that," he added.
The Singapore-based low cost carrier last year confirmed an order for eight Airbus A320 planes worth an estimated $500 million.
That will increase its fleet size to 20 by 2010.
Some of the planes will be used for a new joint venture in the region, which would be announced before the end of February.
This is in addition to a previous agreement with SEAIR, a Philippines-based carrier, to secure a base in Manila's Clark Airport.
Davies said: "The new venture will be more comprehensive than what we have in the Philippines. I think our view is that we're not really interested in investing lots of money to buy an existing airline.
"We think we can create better long-term shareholders return if we help create new businesses. I think this new venture will be one that is relatively small at the start, but will have plenty of opportunity to grow."
He added that Tiger Airways is open to more tie-ups.
He said: "There are many companies around the region that see being part of a family of airlines that operate under Tiger brand to be a positive development for them. We've got a number of companies that have approached us, and we're in negotiation with a handful of companies around the region.
"If we can come to an arrangement that enables us to expand our operations and increase our economies of scale, then we'll be happy to conclude more agreements." - CNA /ls
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