Trujet, a regional airline may go in for an Initial Public Offer (IPO) after three years as it expects to consolidate its position as a strong player in niche segment connecting tier-II and III cities by then, a senior official of the city-based carrier said Friday.
The startup airlines which commenced operations in 2015 is all set to double the fleet size to 10 in the next six to eight months and plans to add five to eight in the next fiscal taking the total number of aircraft to 18 by FY21.
“It (IPO proposal) is still premature. In the coming to three years, once we get settled and once we are consolidated then we will go for IPO,” Turbo Megha Airways, Director, KV Pradeep said at a press conference.
Currently infra major MEIL holds 90 per cent stake and rest is with former union minister Chiranjeevi’s son actor Ram Charan and others.
“Once we reach reasonable size, definitely (we will consider IPO). For any airlines, the exit path is that only,” he added.
Trujet, chief financial officer, KG Vishwanath said the airlines is expected to book net profit during the current fiscal and with the addition of new aircraft, the topline is expected to touch Rs 600 crore by FY 22.
Trujet which has five ATRs with a network of 20 cities, has achieved operational break-even in most of the routes it operates.
“We expect 50 per cent growth in FY19 over FY18 topline. Another 50 per cent growth in Fy 20. In FY21 we expect 80 per cent growth due to new additions to the fleet. We will add five this year and five to eight next year. By Fy21 we will have fleet size of 18. By Fy 21-22, we will see at least Rs 600 crore of topline,” Vishwanath said.
The company registered Rs 84 crore loss in FY 18 for a revenue of Rs 165 crore, he added.
As part of tapping non-ticket or ancillary revenues, Trujet plans to get into advertisement from boarding passes to aircraft wraps and also offers services such as ground and security handling for other airlines.
“Currently the ancillary revenues is two to three per cent of the total revenues. We would like to take the number up in two phase. In the first phase we would aim to take to 10 per cent and in the second phase it would be 20 per cent,” Vishwanath said.
Trujet looks at Northeast India as big opportunity for growth.
With the addition of five aircraft, it is planing to start six new stations and increase frequency in four cities.
Replying to a query, Vishwanth said they will be adding about 300 employees to the existing headcount of 700 in the next six months.
He said they will take some more grounded Jet Airways employees if they fit into the slot.
Trujet is the first airline in India to have started operations to all the routes under UDAN 1 and 2 and now has plans to start more routes which were allotted under UDAN 3.
