Lion Air plans to launch full service operations in 2013 through its Batik Air division, according to a report in The Jakarta Post. Lion Air’s general affairs director Edward Sirait said, “our economic condition remains healthy and the demand for full-service flights is increasing. We want to tap this opportunity and Batik Air will start its operations in March 2013”. Lion Air is currently processing its flight permit (SIUAU) with the Indonesian Transportation Ministry, after which it would then process its Air Operator’s Certificate (AOC). The carrier will operate 10 Boeing 737-900s, focusing on international services to Southeast Asia, East Asia and Australia. Mr Sirait said he is confident the airline will be able to compete with Garuda Indonesia and Pacific Royale.
Lion Air to launch full service operations in 2013
You may also be interested in the following articles...
Sriwijaya attempts to maintain its position as Indonesia’s third largest airline as market explodes
Sriwijaya Air is seeking to renew its fleet, expand its network and launch a new full-service subsidiary in a bid to maintain its position as the third largest airline in Indonesia’s fast-growing market. The low-profile airline group, which is already one of the 30 largest in Asia, has big ambitions to expand domestically and to a lesser extent internationally with new Boeing 737-800s and Embraer E190s in two-class configuration. But the group plans to stay away from the faster-growing Indonesian budget airline sector and, in a rather odd strategy, have two full-service brands with one positioned at the premium end and one in the middle.
Sriwijaya risks getting squeezed out as much larger Lion and Garuda pursue rapid expansion in both the budget and full-service sectors while the Indonesian affiliates of AirAsia and Tiger grow rapidly at the low end of the market. But within Indonesia’s large group of second tier full-service carriers, Sriwijaya has the strongest position and stands to benefit in the likely event of consolidation.
Tiger Airways narrows losses in FY2013 - but challenges for FY2014 remain
Tiger Airways has narrowed its losses in the year to 31-Mar-2013 and extended its operating profit to a second consecutive quarter while forecasting a positive operating result by mid-Jul-2013 after the sale of 60% of Tiger Australia to Virgin Australia is completed.
The carrier also plans to add frequencies to high demand routes between Singapore and Malaysia and expects to take delivery of 10 A320 during the financial year, half of which will be allocated to the Singapore operation and the remainder between Tiger Australia and two associated airlines, Mandala and SEAir.
Tiger Singapore will use the aircraft to increase capacity by about 25% by the end of FY2014 and taking advantage of expanded bilateral rights between Singapore and Indonesia which will also boost Mandala. However, the group still faces significant challenges as it strives to nurture three affiliated carriers in Australia, Malaysia and the Philippines to profitability.