AviAsian
Jul 9, 04, 5:58 am
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Orient Thai looking to establish airline in HK
Privately owned Orient Thai Airlines, which wants to sell shares to the public next year via an initial public offering (IPO), is considering getting involved in a start-up airline in Hong Kong.
CEO Udom Tantiprasongchai says he has been approached by an undisclosed Hong Kong-listed property group which wants Orient Thai to help establish and manage an airline in Hong Kong that will operate to cities in China.
He says Orient Thai would have equity in the new airline because the two parties are considering a share swap in which the Thai carrier would get 25% of the Hong Kong company’s shares and vice versa.
Udom says the Hong Kong partner is keen to launch the airline before year-end and tap into the huge growth in passenger traffic between Hong Kong and China. He says the new airline will be operating aircraft larger than regional jets and suggests it will probably start with Boeing 737s.
While the Hong Kong venture is more immediate, next year Orient Thai plans to have an IPO.
At this stage the international carrier is looking to sell a 30% stake through the issuance of new shares that will be sold via an IPO, confirms Udom, although the percentage to be sold may change because that “will be the job of the financial advisor” to help determine.
He says Orient Thai wants to become a public company because “first of all we are a public transportation company”. He adds: “If we turn ourselves into a public company then we will get better treatment from the Government.
“In the past…I did not want to go into an IPO because we were okay with cash…[but] we plan to use the money from the IPO to buy more modern aircraft because it is better to own rather than lease aircraft.”
Orient Thai currently has eight Boeing 747s, mostly –200 variants, as well as two Boeing 757-200s, says Udom. He also says the airline is negotiating finance leases on two more 757-200s that it hopes to take delivery of as early as next week.
In addition, the carrier has been saying since last year that it plans to get Boeing MD-80-series aircraft for its low-fare domestic operation One-Two-Go, which uses the 757-200s and sometimes the 747s.
Udom says even though there are plenty of MD-80s available it is taking time to secure appropriate ones because he is only interested in aircraft that have heat blanket insulation approved by the US FAA.
The FAA issued an airworthiness directive (AD) that comes into effect in June 2005 requiring operators of MD-80s, MD-90s, MD-88s, McDonnell Douglas DC-10s and Boeing MD-11s to replace insulation blankets covered with metalised Mylar. The directive was issued in May 2000 after some Mylar insulation blankets ignited.
Source: ATI
Orient Thai looking to establish airline in HK
Privately owned Orient Thai Airlines, which wants to sell shares to the public next year via an initial public offering (IPO), is considering getting involved in a start-up airline in Hong Kong.
CEO Udom Tantiprasongchai says he has been approached by an undisclosed Hong Kong-listed property group which wants Orient Thai to help establish and manage an airline in Hong Kong that will operate to cities in China.
He says Orient Thai would have equity in the new airline because the two parties are considering a share swap in which the Thai carrier would get 25% of the Hong Kong company’s shares and vice versa.
Udom says the Hong Kong partner is keen to launch the airline before year-end and tap into the huge growth in passenger traffic between Hong Kong and China. He says the new airline will be operating aircraft larger than regional jets and suggests it will probably start with Boeing 737s.
While the Hong Kong venture is more immediate, next year Orient Thai plans to have an IPO.
At this stage the international carrier is looking to sell a 30% stake through the issuance of new shares that will be sold via an IPO, confirms Udom, although the percentage to be sold may change because that “will be the job of the financial advisor” to help determine.
He says Orient Thai wants to become a public company because “first of all we are a public transportation company”. He adds: “If we turn ourselves into a public company then we will get better treatment from the Government.
“In the past…I did not want to go into an IPO because we were okay with cash…[but] we plan to use the money from the IPO to buy more modern aircraft because it is better to own rather than lease aircraft.”
Orient Thai currently has eight Boeing 747s, mostly –200 variants, as well as two Boeing 757-200s, says Udom. He also says the airline is negotiating finance leases on two more 757-200s that it hopes to take delivery of as early as next week.
In addition, the carrier has been saying since last year that it plans to get Boeing MD-80-series aircraft for its low-fare domestic operation One-Two-Go, which uses the 757-200s and sometimes the 747s.
Udom says even though there are plenty of MD-80s available it is taking time to secure appropriate ones because he is only interested in aircraft that have heat blanket insulation approved by the US FAA.
The FAA issued an airworthiness directive (AD) that comes into effect in June 2005 requiring operators of MD-80s, MD-90s, MD-88s, McDonnell Douglas DC-10s and Boeing MD-11s to replace insulation blankets covered with metalised Mylar. The directive was issued in May 2000 after some Mylar insulation blankets ignited.
Source: ATI