AirAsia Indonesia hopes to raise up to US$200 million in an initial public offering in the fourth quarter of this year that will hand investors up to one fifth of the airline.
The announcement comes after flag carrier Garuda Indonesia listed last month, selling 28 percent of its total equity, to help expand its fleet.
Garuda shares plunged 17 percent on their debut as analysts said that the issue price was too expensive, although the airline maintains it will reap long-term benefits through the country’s domestic passenger growth,
Meanwhile an official enquiry has found a Garuda Indonesia attempting a landing at Darwin airport was within 500ft of the runway before pulling out after a “misunderstanding” with the control tower.
The report released by the Australian Transport Safety Bureau said the Boeing 737 strayed outside the “tolerance zone” in its approach.
The weather was rough and the safety report said the pilot did not correct for wind – “which blew aircraft right off track”.
The jet was flying from Bali to Darwin in December 2008. Garuda scrapped its Darwin-Denpasar service the following year.
