- CAPA Analysis
- Schedule Analysis
- Cargo Analysis
- Route Maps
- Fast Fact Report
- IATA Code
- ICAO Code
- Corporate Address
- Jl. Gadjah Mada No.7, Jakpus, Jakarta Raya, Indonesia
- Main hub
- Jakarta Soekarno-Hatta International Airport
- Business model
- Low Cost Carrier
- Domestic | International
- Airline Group
- Part of Lion Group
- Association Membership
- Indonesian National Air Carriers Association (INACA)
- Codeshare Partners
- Thai Lion Air
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.
524 total articles
Batik Air to transfer services to Jakarta Soekarno-Hatta Airport terminal 1C on 21-Jan-2015: reports
84 total articles
Batik Air, the world's first full service subsidiary of an LCC group, is planning rapid expansion in 2015 as it steps up competition with Garuda Indonesia. Batik should be able at least to double its share of the Indonesian domestic market in 2015 while also entering the international market.
Batik did not meet its initial growth targets for 2014 due in part to aircraft delivery delays. But Batik has now caught up on deliveries, after taking 10 aircraft in 4Q2014, and is steadily building up its network.
The Lion Group full-service subsidiary currently serves 15 domestic destinations. It is planning to significantly grow its domestic network in 2015 as its fleet expands from 18 to nearly 40 aircraft.
Garuda Indonesia is reducing capacity across its medium and long-haul networks as the airline group increases its focus on the domestic market. Garuda has now made multiple adjustments to its international expansion plan, which has proven to be overly ambitious.
Capacity to Australia and Japan, Garuda’s two largest international markets after Singapore, is being cut as part of a restructuring of its unprofitable international operations. The cuts are a sensible response to overcapacity and intensifying competition but leave an opening for competitors, particularly long-haul low-cost start-up Indonesia AirAsia X.
Garuda will likely allocate almost all of its additional capacity in 2015 to the domestic market. The domestic expansion is partly strategic as Garuda responds to the rapid expansion of Lion Group full service subsidiary Batik Air.
Regulation of Indonesia’s airline sector is becoming more stringent as the government introduces a new floor price which will force carriers to stop selling heavily discounted fares. The new measure is an unfortunate knee jerk response that will purely have a commercial impact on airlines. Ostensibly a safety related move, it can only have a counterproductive effect in that regard.
The Indonesia’s airline sector is already over-regulated with unnecessary and impractical rules governing fares and splitting airlines into categories. Indonesia should be deregulating its vibrant industry and instead focus on upgrading infrastructure to facilitate future growth and meet global standards.
Indonesia’s domestic market has nearly doubled in size over the past five years and prospects for long-term growth remain bright. But growth slowed in 2014 as most airlines became unprofitable. This is hardly the time for new regulations that meddle in commercial matters and have nothing to do with operations or safety.
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.
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 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.