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Lion Air

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Lion Air

IATA Code
JT
ICAO Code
LNI
Corporate Address
Jl. Gadjah Mada No.7, Jakpus, Jakarta Raya, Indonesia
Website
http://www.lionair.co.id
Main hub
Jakarta Soekarno-Hatta International Airport
Country
Indonesia
Business model
Low Cost Carrier
Network
Domestic | International
Airline Group
Part of Lion Group
Association Membership
Indonesian National Air Carriers Association (INACA)

Lion Air is an Indonesian hybrid airline based at Jakarta-Soekarno-Hatta International Airport. Commencing operations in 2000 and based in Jakarta, Lion Air is the largest privately-owned airline in Indonesia. The carrier operates a network of scheduled passenger services throughout South East Asia and the Middle East.

Location of Lion Air main hub (Jakarta Soekarno-Hatta International Airport)

LCCs will continue to evolve into hybrids of the original core model. CAPA and OAG consider Lion Air fits the LCC profile and it is included in our reporting on this basis. Please note: when reporting for an airline is changed from or to LCC the historical data is not affected and it can lead to a distortion in the current reported data. Contact us if you have any queries.


 
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495 total articles

and

81 total articles

and

Lion’s Malindo Air to compete vs AirAsia, Jetstar & Tigerair on world’s top international LCC route

12-Oct-2014 6:00 PM

Lion Group Malaysian affiliate Malindo Air is planning to launch services on 3-Nov-2014 to Singapore, which will become the hybrid carrier’s 10th international destination from Kuala Lumpur International Airport (KLIA). Malindo will be the fourth LCC on the KLIA-Singapore route, which will become the largest international LCC route in the world based on seat capacity.

Lion will join Asia’s other three main LCC groups – AirAsia, Jetstar and Tigerair – in competing in the busy Singapore-Kuala Lumpur market. While Malindo may find the local market challenging, particularly from a Singapore point of sales perspective given its unfamiliar brand, the carrier will also offer connections passengers beyond Kuala Lumpur with a focus on South Asia.

Kuala Lumpur-Singapore will be Malindo’s first destination with 162-seat 737-800s. Malindo is taking two 737-800s in 4Q2014, supplementing its existing jet fleet of six 180-seat 737-900ERs. The 737-800s will also be used to launch service to Bandung in Indonesia and to add a second daily flight to Bangkok.

Lion Air Group slows expansion. But maintains position with fastest growth and most flexible fleet

22-Sep-2014 10:00 AM

The Lion Air Group has started to slow its capacity expansion in the intensely competitive Southeast Asian market, joining competitors in adjusting fleet plans in response to overcapacity and challenging market conditions.

The group, which consists of five airlines in three Southeast Asian countries, was initially planning to add at least 32 aircraft in 2H2014. An adjustment of three to six aircraft has been pursued by using its leasing subsidiary to start placing aircraft outside the group. Lion also has fallen behind its 3Q2014 target by several aircraft but at least for now expects to make it up in 4Q2014.

The group will again not end up placing in Southeast Asia all 60 aircraft slated for delivery in 2015 as its leasing subsidiary Transportation Partners further ramps up third party activity. But Lion is still on track to expand its fleet at a much faster rate than rival groups, enabling it to overtake or widen the gap with competitors.

Southeast Asian airlines: 80% were unprofitable in 1H2014 but conditions are starting to improve

15-Sep-2014 10:00 AM

Southeast Asian airlines have faced extremely challenging market conditions in 2014, resulting in an alarming amount of red ink. Of the 17 airlines in Southeast Asia that report earnings only four posted operating profits in 1H2014 compared to 12 in 1H2013.

Among the nearly 50 airlines based in Southeast Asia, excluding small regional and charter operators, approximately 80% were not profitable in 1H2014. Losses are likely to continue through at least 3Q2014 but there are indications market conditions will start to improve by 4Q2014 or 1H2015.

Several Southeast Asian airlines have responded to overcapacity by and cutting capacity or slowing their expansion. Markets that have seen political and economic instability are also starting to stabilise.

Garuda Indonesia LCC subsidiary Citilink will focus on the domestic market as fleet growth slows

21-Aug-2014 5:30 PM

Garuda Indonesia budget subsidiary Citilink is focusing on further expanding in the domestic market, particularly at the capital as slots open up at both Jakarta airports. Citilink is adding seven A320s in 2H2014 but only five aircraft in 2015, nearly all of which will be allocated for domestic expansion.

Citilink is currently entirely a domestic carrier as its initial foray into the international market in Mar-2014, with a route from Surabaya to Johor Bahru in southern Malaysia, was pulled after only one month. Citilink still plans to pursue international expansion, including to Singapore and Australia, but the focus over at least the next year will be on capitalising on domestic opportunities brought about by consolidation in the dynamic Indonesian airline sector.

Citilink also has slowed fleet expansion by deferring 11 A320 deliveries that were originally slated for 2014 and 2015. This is a sensible move given the market conditions but makes it more difficult to pursue meaningful international expansion.

Malindo Air to resume international expansion in 4Q2014 with more capacity to India and Thailand

22-Jul-2014 1:00 PM

Lion Air Group Malaysian affiliate Malindo Air is planning to add capacity to India and Thailand in 4Q2014 as part of the next phase of its international expansion. Services to North Asia including mainland China are expected to be launched in 2015 as part of a subsequent phase.

Malindo has been focusing on Bangladesh, India and Indonesia since it launched international services just under a year ago. Malindo also now serves Bangkok in Thailand.

Malindo so far this year has concentrated on domestic turboprop expansion but will resume growing its international operation in 4Q2014 as it adds two 737-900ERs. The two aircraft will be Malindo’s first additional jets in over a year and will likely be followed by faster expansion of the 737 fleet in 2015. This is the second of a two part report on Lion Group's Malindo.

Lion Air Group rate of fleet expansion kicks into a higher gear while AirAsia slows down

15-Jul-2014 1:06 PM

Lion Air Group’s pace of expansion is about to accelerate as it takes delivery of its first A320 and increases its 737 delivery rate. The group plans to add over 30 aircraft in 2H2014 as it increases its overall average monthly intake from three to five aircraft – a rate it will maintain in 2015, resulting in a staggering 60 deliveries next year.  

At the same time AirAsia Group is slowing its fleet expansion, particularly in the Southeast Asia market. AirAsia is growing its Southeast Asian fleet by only six aircraft in 2H2014 and may not add any aircraft in 2015 as the focus will be on spooling up new affiliates in India and Japan.

If Lion does not follow AirAsia in slowing down growth in Southeast Asia it will quickly shoot past AirAsia. There is a risk market share gains will come at the expense of yields and profitability as several Southeast Asian markets are already suffering from overcapacity - but there is a larger strategic game being played out now.

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