Spring Airlines eyes domestic listing within 2 years

Shanghai-based Spring Airlines said on Tuesday it plans to list in mainland stock market within two years with Shanghai Stock Exchange its first choice.

It expects to raise fund from the stock market to finance its expansion plan of adding more planes to its fleet and is estimated to cost US$1.2 billion. The carrier is now in talks with several underwriters on the IPO issue, company spokesman Zhang Lei said.

As China's first budget carrier, Spring saw its net soared 250% year-on-year to RMB 70 million (US$9.85 million) in 2007 and revenue hit RMB 1.23 billion, an annual increment of 150%. Moreover, it carried 2.35 million passengers last year, 62% of whom were on business trip.

The significant growth comes mainly from robust market demand and lower costs, Zhang said, adding that its operation costs were 18% lower than industry average, while management costs were 53% lower.