UTAir, Russia's third-biggest airline, is considering raising $100 million to $350 million via a share float abroad.
Igor Petrov, the company's financial director, said UTAir's controlling shareholders would decide about the number of shares UTAir might float through an IPO or private placement, Vedomosti reported Monday.
Surgutneftegaz's nongovernmental pension fund owns 60.67 percent of UTAir.
Airline chief Andrei Martirosov said the company needs to attract additional funds to promote its business development.
Raiffeisenbank analyst Konstantin Yuminov believes that UTAir will float less than 30 percent of its shares to reduce the company's debt and renew its fleet of about 350 helicopters and 200 passenger planes, roughly half of which are foreign-made, Vedomosti said.
Martirosov said UTAir plans to buy 88 Boeing and Airbus passenger planes and 103 helicopters over the next several years.
UTAir is the third-biggest airline in Russia following Aeroflot and Transaero, with capitalization of $373 million.
So far UTAir has carried about 7.25 million passengers in 2012, which is 31.4 percent more than the previous year. The carrier reported a half-year profit of $8.5 million.
UTAir plans to expand its operations to fly 15 million passengers per year by 2017 and has ambitions of becoming Russia's No. 2 carrier, according to Vedomosti.
In July, the airline signed a $2.07 billion contract to acquire 20 Airbus A321 planes, Interfax reported.
Related articles:
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
