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Volaris has no plans to raise capital 0

Mar 7, 2014

Mexico's low-cost airline Volaris said its IPO in September has allowed the company to have a much more efficient financing strategy and diversify its capital sources, but it does not plan to raise more debt or equity in the medium term. "In the beginning we started with private equity then we got some debt and then we were able to go to the public equity markets. That has allowed us to diversify quite a lot," Volaris CFO Fernando Suarez told LatinFinance on Thursday. The airline is growing at double-digit rates and even though it is part of a sector that demands high investments, it does not plan to tap the capital markets for a while, he said. "We don't own any airplanes right now, all the aircraft we have are on lease, but the liquidity that we have could allow us to buy some in the future," Suarez said, adding that the company was not planning to buy any immediately. Volaris has been refinancing the credit lines for pre-delivery payments on some of the 50 leased airplanes that they will incorporate into their fleet. "Today we have 45 airplanes ... and by the end of 2020 we'll have around 65 or 70," he said, adding that most of the plans on order will replace the aircraft now in use. Regarding growth plans, Suarez said Volaris would focus on the local Mexican market and on increasing routes to the US, as it expects higher demand for tickets amid good growth prospects for the Mexican and US economies.

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