介绍:
Anchor: Chinese budget carrier Spring Airlines said it plans to raise 2.5 billion yuan, or $400 million in an initial public offering in Shanghai to fund fleet expansion in the country`s rapidly expanding aviation sector.
The company plans to sell up to 100 million new shares for listing on the main board of the Shanghai Stock Exchange.
Spring Airlines first announced plans for an IPO in 2009, seeking to raise more than 1.0 billion yuan, but delayed several times due to sluggish conditions and weakness in the domestic aviation sector.
For more on this, we're now joined on the line by..
Q:
What does Spring Airlines want out of this IPO? How could the proceeds help Spring Airlines to expand?
Some of the Spring Airlines profits are coming from government subsidies. Why does local government provide financial support/subsidies to the budget airlines here in China?
What are challenges the Chinese budget airlines still facing?
Even State-owned airlines profits drop by more than a quarter in 2013 as intensifying competition weighed on ticket prices, despite growing demand for air travel. Is there a large market for budget airlines here in China?
Low-cost carriers now account for below 5% of China's aviation market by passenger capacity, far lower than the 50% market share budget carriers enjoy in Southeast Asia. Why is it and how could Chinese low-cost carriers thrive in the market?
The average passenger load factor, which measures the proportion of seats filled with paying passengers, is 94%, which is quite high. How did they achieve this? Is this only because they charge less than competitors? How about Jixiang airlines, which is also budget airlines?
How do you compare the Chinese budget airlines with overseas budget airlines including Easyjet and Air Asia? How do they differ from their overseas counterparts?
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