Lion Air's Batik Air plans major domestic push followed by ambitious international expansion

Lion Air full-service subsidiary Batik Air is aiming to expand into the international market in late 2014 and operate several international routes from four Indonesian gateways by the end of 2015. The international expansion follows an initial domestic focus; 22 of the 23 routes to be operated by Batik by the end 2014 will be domestic.

The international expansion is expected to start in 4Q2014 with Jakarta-Singapore service, followed by Jakarta-Kuala Lumpur in early 2015. Batik plans to also launch international flights by the end of 2015 from Bali, Batam and Makassar as China, Hong Kong and Australia are gradually added to its network.

The Batik international expansion plan is ambitious and will face several challenges. Competition will be fierce while traffic rights, slots and approvals from foreign regulators could prove elusive in some of the targeted markets. Batik has an unknown brand overseas, which will make it hard to sustain its 90% load factor as it spreads its wings.