Porter Aviation Holdings Inc. has decided to use the profits collected by an initial public offering, as the airlines is expecting elevated passenger traffic because of the economic revival and the airlines plan to expand.
It was reported by Globe and The Mail that Porter intends to collect C$120 million from the sale. However, the filing of the company in association with Canadian regulators today does not anywhere specify the amount of money that would be raised.
It has been stated in the filing that the company this month, plans to buy “nine additional aircraft, including the acquisition of two new aircraft scheduled to be delivered”.
Also, according to the airline, last year 913,000 passengers flew. This figure was 65% up from 2008 because of the addition of planes and routes.
Presently, the airline runs a fleet of 18 turboprop planes. Filing also states that the cost strength of the carrier is going to become more powerful and the profitability of the airlines will also incline, as the healing of economies in North American and other global economies along with the “reduced capacity”.
As per forecast by Transport Canada, the Federal Government Agency that supervises airline industry, the passenger traffic is expected to elevate 4.9% by 2011.