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Friday, May 25, 2007

Frankfinn to start airline by 2009; plans IPO

Moving a step further from creating manpower for the aviation industry, Frankfinn Aviation Services Pvt Ltd on Thursday said it will start a low-cost airline by 2009 and plans to tap the capital market for funding the new venture.

"After having established strong presence in training of skilled manpower for the industry, we are planning to start an airline named 'Air Frankfinn' by the end of 2009 or early 2010," Frankfinn Aviation Services chairman K S Kohli told the media.

"It will be a low-cost airline with frills. We will offer lot of exclusive services and make other airlines run for their money," he said.

Kohli said the company is in the process of appointing an aviation consultant and would file an application with the government seeking permission for the airline in next three to four months.

The company plans to start-off with a fleet size of five aircraft, of which three would be big and two smaller ones.

"Initially we will have five aircraft, of which three would be possibly either Airbus or Boeing. In next three years from the day we start operations, the plan is to have at least 25-30 aircraft in the fleet," Kohli said.

The company also has plans to mop up funds from the capital market with an initial public offer (IPO) in 2009, to support the airline project and other expansion plans, he said.

Kohli, however, did not reveal the sum Frankfinn was planning to raise, saying "it is premature to talk about figures."


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