Lion Air new Thailand affiliate plans late 2013 launch, providing new competition for AirAsia & Nok

Indonesia's Lion Air Group is aiming to launch a new affiliate in Thailand by the end of 2013 with an initial fleet of two 737-900ERs based at Bangkok Don Mueang Airport. The new carrier, Thai Lion, will follow the low-cost model and, unlike Lion's Malaysian subsidiary Malindo, provide an all-economy no-frill service.

Thai Lion will initially serve two international routes - Kuala Lumpur and Jakarta - and Thailand's second largest domestic route, Bangkok-Chiang Mai. With Kuala Lumpur and Jakarta, Thai Lion will be able to leverage the hubs of its sister carriers.

The new carrier will compete primarily against Thailand's two existing LCCs, Thai AirAsia and Thai Airways' low-cost affiliate Nok Air. Both are based at Don Mueang and serve Chiang Mai while AirAsia is the market leader between Bangkok and Kuala Lumpur and also serves Bangkok-Jakarta.