Arik Air has said that it will increase its daily schedule flights to New York from thrice a week to daily. Mr Chris Ndulue, Arik Air CEO in Abuja stated that Arik would start daily flights to New York, up from three times a week, and also fly to Rome and Paris within 18 to 24 months.
“The airline plans to start daily flights to New York within the next two years; it’s currently flying to New York three times a week. It also plans to add new international routes, including to Rome and Paris, which will generate more foreign exchange revenue.” He explained that desired to expand internationally both to bring in more hard currency so as to cushion the impact of the economic slowdown at home, and wants new investors to help it grow rather than using internally generated cash or debt. And to finance its expansion, He stated that the company planned to raise a total of $1 billion through a private share placement next year and an initial public offering (IPO) “one year or 18 months down the line.”
He said, “What we plan to do is first a private placement which will bring in a few new shareholders, then one year or 18 months down the line we can do an initial public offer.”
“We are looking at something in the neighbourhood of $1 billion for both private placement and IPO,” Ndulue said
He said that the airline has appointed advisers for the share placement and potential IPO in Lagos, with a secondary listing in London. The Lagos stock market, which is down 4 percent in local currency terms this year and at a 15-year low in dollar terms, has not had an IPO since 2009 due to sluggish appetite from foreign investors. The carrier, which has a fleet of 28 aircraft, flies mainly within western and central Africa, as well as to London and Johannesburg.
