Good niche player but airline sector has been a disaster for investors long term.
Porter Airlines poised for IPO
Brent Jang
15:05 EST Friday, Apr 16, 2010
Porter Airlines Inc. is planning an initial public offering less than four years after it launched operations at Toronto's island airport near the downtown business core.
The regional carrier, through Porter Aviation Holdings Inc., has submitted a preliminary prospectus for the IPO.
“No existing Porter shareholders will sell shares in the initial public offering,” the Toronto-based airline said in a statement Friday.
“The underwriting syndicate is led by RBC Capital Markets Inc. and also includes National Bank Financial Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., TD Securities Inc., GMP Securities L.P., Credit Suisse Securities (Canada) Inc., Raymond James Ltd. and Versant Partners Inc.”
Porter began flights at Billy Bishop Toronto City Airport in October, 2006.
“Porter intends to use the net proceeds of the proposed offering for working capital and other general corporate purposes, including potential acquisition of aircraft,” said the carrier, which will be adding two more Bombardier Q400 turboprops this month to boost its fleet to 20 of the planes.
The airline launched with just two Q400s, flying between Ottawa and Toronto. Its other destinations now include Montreal, Quebec City, Halifax, St. John's, Thunder Bay, Sudbury, New York (Newark), Chicago (Midway) and Boston (Logan), as well as seasonal service to Mt. Tremblant, Que., and Myrtle Beach, S.C.
Flights to Moncton start June 25.