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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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446 total articles

and

78 total articles

and

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.

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.

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