Indonesia's Lion Air aims to raise over $1 bln in IPO by 2012

JAKARTA Wed Feb 2, 2011 3:11am EST

JAKARTA Feb 2 (Reuters) - Lion Air, Indonesia's biggest airline by passenger volume, aims to raise over $1 billion in an initial public offering by 2012, its CEO told Reuters on Wednesday.

The airline has secured a $1 billion loan to purchase 22 planes this year, including 16 Boeing 737-900s as part of previously announced expansion plans.

Airline executives say the Indonesian market is seeing strong demand and is a bright spot in a global industry still struggling to recover after the financial crisis, though budget carrier Mandala Airlines recently suspended flights because of debt problems. (Reporting by Janeman Latul and Fathiya Dahrul; Editing by Neil Chatterjee)

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