Lion Air took (23-Dec-2009) delivery of four B737-900ER aircraft from Boeing in Dec-2009. The aircraft will be deployed to increase frequencies on existing routes and to replace older aircraft in the fleet. Lion Air is the launch customer of the B737-900ER. [more]
Boeing delivers four B737-900ERs to Lion Air
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Lion Group expands fleet by 16 aircraft in 1H2016, surpassing the 250 aircraft milestone
Indonesia-based Lion Group expanded its fleet by 16 aircraft in 1H2016, cementing its position as the largest airline group in Southeast Asia. Lion now has a fleet of more than 250 aircraft while its rival AirAsia – the region’s second largest group – has under 200 aircraft based in Southeast Asia.
However a net gain of 16 aircraft over the last six months marks a slowdown for Lion. The group’s fleet grew by 59 aircraft in 2015 and 39 aircraft in 2014.
None of Lion Group’s five airline subsidiaries or affiliates added more than five aircraft in 1H2016, resulting in relatively modest capacity expansion. The rate of expansion will likely pick up in 2H2016 but not approach previous levels.
Garuda Indonesia Part 3: new domestic strategy is to slow Garuda growth, accelerate LCC Citilink
Garuda Indonesia is slowing its domestic expansion at its main full service brand while accelerating domestic expansion at the LCC subsidiary – Citilink. Garuda is considering the transfer of secondary leisure-focused domestic routes to Citilink and for the first time may start codesharing with its sister airline, which until now has focused on operating alongside Garuda on trunk routes.
The Garuda group has tweaked its domestic strategy in response to both intensifying competition from the Lion Group subsidiary Batik Air, and an overall slowdown in domestic growth. Batik is a full service airline but has impacted Citilink as its fares are generally priced only slightly above Citilink's fares, and significantly below those of Garuda. Citilink slipped back into the red in 1Q2016 after six consecutive profitable quarters.
Citilink is essentially now sandwiched between Lion, which generally has the lowest fares in Indonesia, and Batik. Garuda believes that it needs to respond by expanding Citilink rapidly, resulting in market share gains and lower unit costs as it starts to achieve better economies of scale.