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Lion Air and NADI form JV to form Malindo Airways

11-Sep-2012 4:26 PM

PT Lion Air and Malaysia's National Aerospace and Defence Industry (NADI) signed a JV agreement to establish a new low-cost airline, Malindo Airways, which is expected to start operations on 01-May-2013 at Kuala Lumpur International Airport 2 using a fleet of around 12 Boeing 737-900s, according to reports by Bernama and The Star Online, 11-Sep-2012). "The JV will see NADI holding a 51 per cent stake with the remaining shares belonging to PT Lion Air," PT Lion Air President Director Rusdi Kirana said. The carrier could have a fleet of around 100 aircraft within a decade, comprised of Boeing 737 and 787 aircraft, NADI president Ahmad Johan said and will draw its aircraft from Lion Air. On the carrier's pricing, Lion Air President Director Rusdi Kirana said, “We are looking at selling tickets at AirAsia’s pricing or may be lower”. The carrier will reportedly provide a hybrid product with its aircraft in a two class configuration - 12 in business class and 168 in economy. Malindo Air plans to operate to countries including Thailand, China, India, Japan and Australia, besides offering services within Indonesia and Malaysia. The airline will also have a secondary hub in Kota Kinabalu, according to Malaysian Prime Minister Datuk Seri Najib Tun Razak.