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High density A330-300s give Indonesia’s Lion Air an opportunity to test a long haul low cost model

Analysis

Lion Air is taking delivery over the next three months of three A330-300s in single class 440-seat configuration. The A330s will provide some capacity growth for Lion in a year Indonesia's largest carrier has taking an unusual breather from expanding its short haul fleet with only one 737 delivery for all of 2015.

The A330s are partially being used to replace ageing 747-400s, which Lion has operated for several years on religious pilgrimage flights to Saudi Arabia. But as the A330s will be utilised significantly more than the 747s they will also be deployed on domestic trunk routes.

Lion has committed to acquiring only three A330s but could add more should it see an opportunity to pursue a long haul low cost model. Lion has traditionally shied away from routes over four hours with the exception of Jeddah but could potentially use A330s in future to expand in North Asia and other medium haul markets.

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