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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
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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408 total articles

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70 total articles

and

Thai Lion Air focuses on domestic expansion, quickly gains scale on Bangkok to Chiang Mai & Hat Yai

8-Apr-2014 9:00 PM

Thai Lion Air is focusing primarily on domestic expansion with a mix of trunk and regional routes. Thai Lion currently operates four domestic routes, three of which were launched in Mar-2014 as the carrier took delivery of two additional 737-900ERs for a total of four and its first ATR 72.

International expansion will take a back seat in response to sagging inbound demand due to the continued civil unrest in Bangkok. But the start-up is experimenting with two regional international routes.

Thai Lion faces intensifying competition and challenging market conditions. But the medium to long-term outlook remains relatively bright as the Thai market should be able to support more LCC capacity, both domestically and internationally.

Southeast Asia low-cost airline fleet to expand by almost 20% in 2014. Are more deferrals needed?

11-Mar-2014 11:00 AM

Southeast Asia’s low-cost carrier fleet is still projected to increase by nearly 20% in 2014 despite a recent spate of delivery deferrals and suspensions of expansion. The region’s LCC fleet also grew by about 20% in 2013, creating overcapacity in several Southeast Asian markets and leading to the current pressure on yields and load factors.

The AirAsia Group has made the right move in slowing down expansion by deferring deliveries and selling aircraft. Tigerair Mandala and Jetstar Asia also have decided to take at least a one-year hiatus from expanding their fleets. More Southeast Asian LCCs, including potentially the Lion Air Group, need to make similar adjustments for market conditions to improve.

Southeast Asia is still a market with huge opportunities for further LCC growth. But LCC capacity expansion has started to outstrip supply, perhaps necessitating a pause for breathing space.

As many as 10 Southeast Asian LCCs are poised to enter Australia, further pressuring incumbents

4-Mar-2014 2:54 PM

Australia is close to attracting service by the end of 2014 from at least three new Southeast Asian carriers. Up to 10 Southeast Asian carriers, including five from Indonesia alone, could launch services to Australia by the end of 2016.

The new entrants, along with continued expansion from the 20 carriers already operating scheduled flights flights between Australia and Southeast Asia, will impact a market that is already suffering from overcapacity. Further reduction in fares will likely result, particularly as all but one of the potential new entrants are low-cost carriers.

The new competition poses yet another new challenge for the Qantas Group, which is struggling to compete in the Australia-Asia market. Other full service airlines – including Singapore Airlines (SIA), Garuda, Malaysia Airlines (MAS) and Thai Airways – will also have to adjust plans as the Australia-Southeast Asia market sees further significant increases in the LCC penetration rate beyond the current 30%.

Lion Air's Batik Air plans major domestic push followed by ambitious international expansion

28-Feb-2014 3:22 PM

Lion Air full-service subsidiary Batik Air is aiming to expand into the international market in late 2014 and operate several international routes from four Indonesian gateways by the end of 2015. The international expansion follows an initial domestic focus; 22 of the 23 routes to be operated by Batik by the end 2014 will be domestic.

The international expansion is expected to start in 4Q2014 with Jakarta-Singapore service, followed by Jakarta-Kuala Lumpur in early 2015. Batik plans to also launch international flights by the end of 2015 from Bali, Batam and Makassar as China, Hong Kong and Australia are gradually added to its network.

The Batik international expansion plan is ambitious and will face several challenges. Competition will be fierce while traffic rights, slots and approvals from foreign regulators could prove elusive in some of the targeted markets. Batik has an unknown brand overseas, which will make it hard to sustain its 90% load factor as it spreads its wings.

Garuda’s Citilink to expand into international market, starting with Malaysia, Singapore & Australia

26-Feb-2014 1:08 PM

Garuda Indonesia budget subsidiary Citilink is planning more rapid domestic expansion in 2014 and the launch of international services, with an initial six routes. The expansion comes despite challenging market conditions in Indonesia and continued losses, including a net loss of USD48 million for 2013.

But Citilink is striving to reduce its costs and improve its profitability by increasing utilisation levels and average stage lengths. Longer domestic routes and the launch of international services will drive up utilisation rates on its fleet of A320s, which is expanding from 24 to 32 aircraft in 2014. International services will also provide an important new foreign currency revenue stream, cushioning the impact from the rapid depreciation of the Indonesian rupiah.

Citilink aims to launch services to four international destinations in 2014. The carrier has selected Johor Bahru in Malaysia as its first destination overseas, followed by Kuala Lumpur, Singapore and eventually Perth.

Indonesia AirAsia slows expansion. Domestic share to suffer but international position to strengthen

20-Feb-2014 7:10 PM

Indonesia AirAsia has decided to significantly slow down expansion in 2014 as market conditions in the Indonesian market, particularly domestically, have become challenging. The carrier, which added eight A320s in 2013, had dropped plans to add two aircraft in 1H2014 and is also considering deferring some or all of the four deliveries initially slated for 2H2014.

Indonesia AirAsia is also planning to adjust its network to focus more on international services. The international market is more profitable as it is less impacted by the devaluation of the Indonesian rupiah. But cutting domestic capacity will result in a reduction in AirAsia’s already small share of Indonesia’s domestic market.

AirAsia still has a strong position and bright outlook in Indonesia’s international market. But 2014 will mark another setback in the group’s long-term strategy of securing a larger presence in Southeast Asia’s largest domestic market.

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