Breaking News

Sun Hung Kai's Thomas Kwok Sentenced to 5 Years in Jail
Tweet TWEET

Pegasus of Turkey Said to Hire Barclays, Is Yatirim for IPO

Pegasus Airlines, a low-cost Turkish carrier which ordered 100 aircraft from Airbus SAS in December, hired Barclays Plc (BARC) and Is Yatirim Menkul Degerler AS (ISMEN) to manage its initial public offering, two people with familiar with the matter said.

The banks will manage the sale of a 31.4 percent stake of Pegasus, owned by Istanbul-based private equity investment group Esas Holding AS, said the people, who asked not to be identified because the selection hasn’t been made public. The IPO is planned for April or May and may raise more than $100 million, one of the people said.

Turkish carriers have added overseas routes and raised capacity on domestic flights as demand for travel grows. That’s led to higher earnings even as airlines elsewhere suffer a slump in business during the global economic slowdown.

The discount airline, known as Pegasus Havayollari AS in Turkish, now serves 24 domestic and 38 foreign routes and carried 11.3 million passengers in 2011.

Ali Sabanci, chairman of Pegasus Airlines, declined to comment. Barclays and Is Yatirim (EKGYO) didn’t immediately respond to a request for comment.

Pegasus has applied to the Ankara-based capital markets regulator SPK for approval of the planned sale of 32.1 million shares in the IPO, according to the regulator’s website.

Pegasus agreed to buy 75 A320neo series single-aisle jetliners, with options for 25 more, with a total list value of $12 billion. The airline now operates a fleet built around Boeing Co. (BA)’s competing 737 model. The accord includes a firm commitment of buying 58 A320neos and 17 larger A321neos.

Pegasus, Turkey’s largest carrier after state-owned Turk Hava Yollari AO (THYAO), or Turkish Airlines, operates a fleet of 42 Boeing aircraft, comprising 40 737-800s -- the single-aisle mainstay of operations at discount carriers including Ryanair Holdings Plc (RYA), Air Berlin Plc (AB1) and Norwegian Air Shuttle ASA (NAS) --and two older 737-400s, according to the company’s website.

To contact the reporters on this story: Ercan Ersoy in Istanbul at eersoy@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.