AI, IA IPOs in '05-06: Patel

Air India (AI) and Indian Airlines (IA) are preparing for their initial public offers (IPOs) by next fiscal to fund their fleet acquisition programmes and enhance the debt-equity ratio.

"We have told the airlines to start working towards that end. It will take some time, and the two airlines could launch the IPOs towards the end of 2005-06," civil aviation minister Praful Patel said today.

Replying to questions on the issue, he said the proceeds of the IPO would be used to finance their fleet expansion plans.

While Jet Airways has already launched its IPO, low-cost carrier Air Deccan has announced plans to go ahead with its IPO by September 2006.