Saudi Aramco IPO given go-ahead by Crown Prince. DGCA asks IndiGo to update Airbus Neo planes before accepting new deliveries.
Green Light: In a meeting he chaired on Friday, Saudi Crown Prince Muhammad bin Salman gave the go-ahead for the IPO of Saudi Aramco, reckoning there was sufficient support from local investors, Bloomberg reports. An official announcement could be expected as early as Sunday.
The IPO, first proposed three years ago, was delayed several times over the years as investors balked at the $2tr valuation. The actual valuation could likely be closer to $1.5tr but will still be a record sale.
The partial privatisation of Saudi Aramco will be a watershed moment for the world’s most valuable company, and the biggest change in the Saudi oil industry since its nationalisation in the 1970s. It is also the cornerstone of Riyadh’s long-term plan to decrease the reliance of the petro-state on its oil wealth and diversify its economy. BBG
Revamp, then Proceed: The Directorate General of Civil Aviation (DGCA) has asked IndiGo to change and update the P&W engines of all 98 Airbus A320 new engine option (Neo) planes it has in its fleet by January 31, 2020. The Neos that don’t meet the new requirements will not be allowed to fly after this date.
IndiGo is the largest customer in the world for Airbus’s Neo aircraft and is yet receive over 638 of them. It will be asked to defer future deliveries until the 98 aircraft it already has can get replacement engines. ToI
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