Sring Airlines, China's first budget carrier, plans to list within two years, with Shanghai as its preferred first choice.
The Shanghai-based airline is confident of the two-year listing deadline because of soaring profit. It said yesterday that its net profit reached 70 million yuan (US$9.85 million) last year, a surge of 250 percent from a year earlier, and its revenue took off 150 percent to 1.23 billion yuan.
Around 69 percent of its revenue came from e-commerce as the carrier offered 199-yuan and 99-yuan tickets which could be bought only via its Website or by mobile phones.
The carrier attributed its strong financial position to robust demand and lower costs.
It carried 2.35 million passengers last year, 62 percent of whom took business trips. Its main operating costs were 18 percent lower than the industry's average level and management costs were 53 percent lower.
The carrier plans to list within two years and Shanghai is its first choice, said Zhang Lei, a spokesman for the airline. The company is in talks with underwriters but has no plans to conduct a private placement yet, Zhang told Shanghai Securities News.
"We expect to list the company in the later half of next year or in 2010," Zhang said without revealing the amount it plans to raise. But he said the money will be used to grow its fleet and to build hubs.
The carrier now operates eight A320 jets from Shanghai to more than 30 domestic cities, including Guangzhou, Xiamen, Sanya and Harbin.
(Shanghai Daily March 12, 2008)
