JERSEY European Airways is considering an early summer or late autumn float on the London Stock Exchange to raise more than £100m.
Exeter-based carrier JEA had planned a flotation last year, but put it back due a downturn in world economic markets.
Chief executive Barry Perrott said the decision to delay flotation to this year is to benefit the airline by millions of pounds. “The £100m was attached to the float a year ago, but expectations are higher now, above £100m,” he said.
Perrott said pre-tax profits for the six months to September 30 of £6.1m – up from the 1997 interim figure of £4.5m – has put the airline on a sound financial footing to float.
The 1998 interim figure exceeded the 1997/98 full year profit of £5.5m.
Perrott said: “Trading is going from strength to strength. We are looking for a window of opportunity for a float in May-June or October-November.
“We will be governed by our March or September results.”
He said the aviation market, depressed due to the Asian economic crisis, should not affect JEA. Perrott said the plunging share prices of recently floated British Regional Airlines, and British Airways, would not affect JEA’s plans.
The new money will mostly be used to buy-out 70% shareholder and chairman Sir Jack Walker. Perrott said the Blackburn Rovers owner would still be the majority stakeholder, with around 30%.
Other capital will be used to add new aircraft to JEA’s short-haul fleet, which is predominately made up of BAe 146s. Embraer 145s and Canadair Regional Jets, both seating 50 passengers, are currently being assessed. JEA expect to have one leased 50-seat aircraft in the fleet this summer, probably an Embraer 145.
Perrott refused to reveal which new routes would be launched this year by JEA, but he said new domestic services were likely from Birmingham and new French connections from UK points.