GoAir plans USD150m IPO: reports

GoAir reportedly plans to raise around USD150 million through an IPO to fund its operational expenses (Reuters, 03-May-2011). The airline has reportedly hired Bank of America Merrill Lynch and Edelweiss Capital to manage the offering. The airline will reportedly file for the share sale shortly. The carrier declined to comment on the report.

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• India domestic passenger growth slows to 8% in Dec-2011; 2012 growth to slow from 16.6% in 2011
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  India’s domestic air passenger growth slowed to 8% in Dec-2011 to less than half the pace of growth experienced in calendar 2011 and down from the 17-22% growth rates seen between Jun-2011 and Oct-2011. While passenger numbers in India’s domestic market have seen growth now for 31 consecutive months, the result for Dec-2011 marks the end of 16 consecutive months of double-digit growth. This single-digit growth in the peak month of Dec-2011 (to 5.63 million passengers) is a sign that slowing economic growth is affecting air travel and reflects impending capacity caution by some of the nation’s largest players.

  India’s domestic passenger numbers increased 16.6% to 60.7 million passengers in 2011, averaging out at 5.1 million passengers per month, and up 74% from 2006 levels. The largest stand-alone carrier was IndiGo with a 19.5% market share, with IndiGo also the fastest growing carrier in 2011.

• Robust growth in India domestic market fails to translate into profits
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  India’s domestic aviation traffic posted double digit growth of 11.1% in Nov-2011 to reach 5.4 million passengers for the month. Growth has slowed from the 17-22% rates seen since Jun-2011, however India remains one of the fastest growing domestic markets in the world, with growth expected to continue despite the current financial challenges experienced by key players in the Indian aviation market.

  In the first 11 months of 2011, domestic passenger numbers increased 17.6% to 55.0 million passengers, averaging out at 5 million passengers per month. India’s domestic market has seen passenger growth now for 30 consecutive months, with 15 consecutive months of double-digit growth. Domestic traffic has increased by 85% in the past five years since Nov-2006, with domestic traffic now 41% above Nov-2007 levels, 80% above Nov-2008 levels and 32% above Nov-2009 levels.