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Malindo Air

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Malindo Air

IATA Code
OD
Date established
22-Mar-2013
Corporate Address
N1, Level 4, Airlines Office
Main Terminal Building
Kuala Lumpur International Airport
64000, Sepang, Selangor Darul Ehsan
Malaysia
Website
http://www.malindoair.com/en/
Main hub
Kuala Lumpur International Airport
Country
Malaysia
Business model
Low Cost Carrier
Network
Domestic | International
Airline Group
Part of Lion Group

Malindo Air is an LCC formed as a joint venture between Malaysia's National Aerospace and Defence Industries (NADI) (51%) and Lion Air of Indonesia (49%). The carrier launched in mid Mar-2013 starting with domestic services and plans to launch a number of international routes to India and Bangladesh in future. The carrier operates a fleet of Boeing 737-900ER and ATR72-212 aircraft from its Kuala Lumpur hubs.

Location of Malindo Air main hub (Kuala Lumpur International Airport)

LCCs will continue to evolve into hybrids of the original core model. CAPA and OAG consider Malindo 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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168 total articles

and

26 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.

AirAsia 2Q profits drop as its Malaysian unit grapples with excess aircraft. But outlook improving

22-Aug-2014 10:17 AM

AirAsia has reported a drop in profits at its Malaysian short-haul subsidiary for 2Q2014 while its affiliates in India, Indonesia, Philippines and Thailand were all in the red. But Asia’s leading LCC group is confident market conditions are improving, leading to improved results in 2H2014 and 2015.

The outlook in Malaysia should particularly improve as AirAsia is in a position to benefit from the upcoming restructuring at Malaysia Airlines (MAS). AirAsia has seen profits slide over the past year due to rapid capacity expansion at MAS and Lion Air Group’s new Malaysian affiliate Malindo Air, pressuring yields.

Malaysia AirAsia has responded by slowing down expansion, increasing ASKs by a paltry 3% in 1H2014 despite having a much larger fleet than one year ago. Anticipated capacity cuts at MAS as it restructures could enable AirAsia to reaccelerate growth and restore aircraft utilisation rates to more normal AirAsia levels.

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.

Malaysia’s Malindo Air rapidly grows turboprop operation with new Penang base and Subang expansion

21-Jul-2014 1:00 PM

Lion Air Group Malaysian affiliate Malindo Air is focusing expansion in 2014 on its turboprop operation in response to opportunities on short routes within Malaysia. Malindo added five ATR 72-600s in 1H2014 and is taking another five in 2H2014, giving it a fleet of 13 ATR 72s but only eight 737-900ERs.

The heavy reliance on turboprops was not expected but enables Malindo to serve routes that are under the radar screen of all-A320 operator AirAsia. Malindo is instead competing mainly with Malaysia Airlines regional subsidiary Firefly as it has focused most of its expansion so far this year at Kuala Lumpur’s second airport Subang.

Malindo is planning to open by the end of 2014 a second turboprop base at Penang and is also looking at potentially opening bases in the east Malaysian cities of Kota Kinabalu and Kuching. The new bases will support several new routes, some of which are completely unserved.

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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