By Cindy Silviana
JAKARTA, Jan 25 Airline group Lion Air could go public as early as next year if Indonesia's economy recovers, its founder and owner told Reuters, saying any listing was intended to improve transparency before he plans to hand over management control in five years.
Last year, weak market conditions forced the group, which operates budget flights throughout Southeast Asia, to delay plans for a listing which would have taken place in the first quarter of 2016.
Southeast Asia's biggest economy likely grew at its weakest pace since the global financial crisis in 2015, hit by faltering consumption, rising unemployment and weak commodity prices.
Lion Air founder Rusdi Kirana said the company could revive the IPO plans in 2017 if economic growth picks up this year. "However if 2016 is still flat, same as 2015, we will postpone," he said in a recent interview.
In 2014, Lion Air floated plans for an IPO to raise up to $1 billion, which would be partly used for airport expansion.
Kirana has spent the past few years grooming Lion Air Chief Executive Rudy Lumingkewas as well as a nephew as possible successors.
He said opening the company to public shareholders would help "control" its management after he leaves, adding: "I try to groom seeds to replace the old or current management. If I have prepared them, I can retire and they can lead this company."
Lion's five airlines operate a combined fleet of more than 200 aircraft, mostly Airbus A320s and Boeing 737s. The company has around 500 more aircraft on order, and expects to take delivery of 40 aircraft this year.
While growth in Indonesia remains constrained by its overcrowded airports, Lion Air's Malaysian and Thai affiliates are considering expanding services to South Asia, China and Northeast Asia in 2016 and 2017, Kirana said.
Lion Air's affiliates were also looking into starting long-haul flights to Europe from 2020, Kirana added. He declined to give further details about any of these plans.
The airline has three Airbus A330 widebody jets that it uses on high-density domestic routes, and will likely need more long-haul passenger aircraft if it wants to fly to Europe.
Lion mainly competes with flag carrier Garuda Indonesia at home, and affiliates of Malaysia's AirAsia as well as other Southeast Asian carriers including Singapore Airlines and Malaysia Airlines.
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