Jakarta (ANTARA News) - Indonesia's largest private airline, Lion Air, plans to raise up to $600 million to acquire stakes or set up new airlines in a number of Asian countries, a company official said on Wednesday.
Lion Air was looking at possible expansion in six countries -- Thailand, Malaysia, Vietnam, Bangladesh and the Philippines, Hasyim Alhabsi, the head of public relations, told reporters.
The airline recently ordered an additional 22 Boeing Co 737-900 series planes as part of its expansion plans, lifting its total orders at the U.S. firm to 122 jets, with a total list price of $7 billion.
"God willing, within 1 to 5 years we will be (operating) in those countries. In the near term, there may be some deals completed in Thailand, Vietnam and Bangladesh," Alhabsi was quoted as saying by Reuters.
"We have been collecting funds from both internal and external sources. We will prepare around $50 million to $100 million for each country."
He did not elaborate on how the money would be raised.
The carrier currently has a fleet of 40 jets on 32 routes.
Lion Air has been aggressively expanding in Indonesia's fast growing airline industry in a country of 220 million people spread across more than 17,000 islands.
The carrier is also expected sign a 10-year $1 billion contract next year with Delta Air Lines , under which the U.S airliner will provide maintenance and services for its fleet.
Indonesia's airline industry has grown rapidly since the government liberalised the sector after the financial crisis in the late 1990s. But a series of recent accidents has raised questions over whether safety has been compromised and whether
the infrastructure and personnel can cope with the huge increase.
There have been calls from some Indonesian officials to modernise ageing fleets to help improve safety.
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