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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 Air 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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437 total articles

and

76 total articles

and

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.

Tigerair and AirAsia lead adjustments to overcapacity in the Jakarta-Singapore market

14-Jul-2014 11:25 AM

Jakarta-Singapore capacity has quickly dropped by over 20%, led by adjustments at LCC groups Tigerair and AirAsia. The declines reverse capacity increases from 2013, when a breakthrough in the Indonesia-Singapore bilateral led to a surge in capacity.

Jakarta-Singapore is the second largest international city pair route in the world but supply in late 2013 and 1H2014 far exceeded demand. As a result it emerged as one of the most obvious examples of overcapacity in the Southeast Asian market.

Airlines were overly ambitious and aggressive in applying for and using newly available traffic rights. Recent adjustments have brought much needed rationality to the market but capacity could start being added back, again putting pressure on yields and load factors.

Tigerair Mandala suspension begins needed consolidation to Indonesian & Southeast Asian LCC sectors

20-Jun-2014 1:16 AM

Tigerair Mandala has announced it is suspending operations from 1-Jul-2014, bringing to a close Singapore-based Tigerair Group’s highly unprofitable foray into other Southeast Asian markets. Tigerair is now turning its focus to its original Singapore operation, which has a stronger position and outlook but also faces short-term challenges.

Tigerair Mandala has struggled since its Apr-2012 launch and had a weak outlook given its small size and lack of scale. Mandala’s demise was inevitable after its two main investors decided against recapitalising the carrier and failed to find a buyer.        

Mandala was by far the smallest of Indonesia’s four low-cost players. It becomes the fourth Indonesian carrier but the first Indonesian LCC to suspend operations since the beginning of 2013.

AirAsia further slows fleet expansion as 1Q profit falls - with the potential to accelerate later

22-May-2014 10:00 AM

Short-haul LCC group AirAsia has reported a sharp drop in profits for 1Q2014, including for its original subsidiary in Malaysia. Long-haul sister group AirAsia X meanwhile swung to a loss in 1Q2014 despite strong traffic growth and load factor improvement as yields in the Malaysian market deteriorated.

AirAsia has made another downward adjustment to its fleet plan, removing six aircraft from its 2014 fleet through aircraft sales. This brings the total reductions for 2014 to 19 aircraft when including the six sales and seven deferrals announced in Feb-2014. The group also expects to defer another seven aircraft in 2015, adding to the 12 deferrals announced earlier and leaving it with a mere 10 deliveries next year.

The new adjustments, which also include deferrals for 2016 to 2018, are understandable given the challenging market conditions. But they may prove to be a step too far, particularly if the pending restructuring at Malaysia Airlines (MAS) proves to be significant, providing AirAsia an opportunity to accelerate growth and improve yields in its home market.

Lion Air has opportunity to accelerate LCC growth in Indonesia after modest traffic gains in 2013

8-May-2014 11:00 AM

Lion Air has an opportunity to win back market share in Indonesia’s dynamic low-cost sector as competitors slow their expansion and in some cases reduce capacity. Lion in 2013 recorded the lowest rate of traffic growth among Indonesia’s four LCCs as its share of the Indonesian LCC market dropped from over 78% in 2012 to about 71%.

Indonesia AirAsia, Garuda Indonesia budget subsidiary Citilink and Tigerair Mandala all gained market share as they expanded more rapidly than Lion, albeit from much smaller bases. But Indonesia AirAsia and to a lesser extent Citilink are slowing expansion in 2014 while Tigerair Mandala has cut capacity.

Lion also has quietly slowed its growth by retiring 737 Classics and switching 737-900ER orders to smaller 737-800s. But Lion has not followed rival LCC groups AirAsia and Tigerair in deferring or cancelling orders. The group will account for about three quarters of the aircraft being delivered to Indonesia’s LCC sector in 2014, putting it in position to make market share gains.

Indonesia begins its radical new PPP drive to develop 10 airports

28-Apr-2014 5:00 PM

Indonesia’s Ministry of Transport (MoT) intends shortly to commence Phase I of a public-private partnership (PPP) scheme to develop regional airports by opening management bids for Bandar Lampung Radin Inten II, Komodo and Palu Mutiara Airports, the first three of ten airports.

The MoT described these three airports as being “facilities that would attract the most interest” and expected to receive competitive tender offers.

MoT's director Bambang Tjahjono advised that in Mar-2014 national airline Garuda Indonesia filed an expression of interest to develop Komodo Airport.

The other seven airports are: Bengkulu, Jayapura Sentani, Matahora, Palangkaraya Tjilik Riwut,Tanjung, Tarakan Juwata and Ternate Babullah.

Indonesia is committed to construction in the airport sector. Ten new airports were constructed in 2013 and another 15 will be in 2014, at a cost of USD3.3 billion. A second airport serving Jakarta may be built on reclaimed land in Jakarta Bay.

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