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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 Air 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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139 total articles

and

21 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.

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.

AirAsia drives rapid growth at Malaysia’s Johor Bahru's Senai Airport, further encircling Changi

27-Apr-2014 2:00 PM

As Kuala Lumpur's rapid LCC-driven traffic expands, AirAsia has unveiled plans for further expansion at Senai International Airport in the southern Malaysian state of Johor, just across the Causeway from neighbouring Singapore. The LCC group plans to add three international routes from Senai in Jun-2014, giving it six international routes, including five to Indonesia. AirAsia also recently launched its eighth domestic route at Senai.

Senai was the fastest growing airport in Malaysia in 2013 and one of the fastest-growing in Asia, with 44% growth, but off a low base, to 2 million passengers. Senai traffic grew by another 36% in 1Q2014 to 550,000 passengers. AirAsia, which currently accounts for about two thirds of total capacity at Senai, has been the main driver.

While Johor has its own fast-growing market, driven by rapid economic development in the state, it offers competition to some extent with nearby Singapore. The three new international routes at Senai for AirAsia, including two to Indonesia and one to Vietnam, come as the LCC group once again faces roadblocks in expanding its Singapore-Indonesia operation.

Kuala Lumpur International traffic surges another 16% in 1Q2014. Is the growth sustainable?

17-Apr-2014 11:00 AM

Malaysia continues to record some of the world’s fastest passenger growth rates, driven by rapid capacity expansion by Malaysia Airlines (MAS) and AirAsia along with the launch of Malindo Air.

Malaysia Airports has recorded 18% passenger growth for 1Q2014, including 16% at Kuala Lumpur International Airport (KLIA). This follows growth of 18% for the full year in 2013, including 19% growth at KLIA, making it the fastest growing major airport in Asia.

The rate of growth is expected to slow down for the remainder of 2014 but remain in the double digits for the full year. The growth over the last year has been spectacular but has come at the expense of airline yields and hence profitability.

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 2014 outlook: More market share gains in Indonesia as aircraft delivery rate increases

16-Jan-2014 12:30 PM

Lion Air could make significant progress in 2014 in its quest to further increase its already leading share of the Indonesian domestic market. The group plans to add nearly 30 aircraft under its three Indonesian operating certificates in 2014, most of which will be used to expand in Indonesia’s huge and rapidly growing domestic market.

The Lion group’s expansion in Indonesia slowed in 2013 as it focused on spooling up its new affiliates in Malaysia and Thailand. There will be more growth for Malindo Air and Thai Lion Air in 2014 but, as the group will take significantly more aircraft compared to 2013, there will be an opportunity to pursue faster growth in Indonesia.

Lion has a medium to long-term goal of capturing a 60% share of the domestic market, up from a 45% share in 2011 and 2012. A 60% share seems unrealistic given the expansion plans of some of its competitors but further gains are likely, starting in 2014.

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