- CAPA Analysis
- Schedule Analysis
- Route Maps
- Fast Fact Report
- IATA Code
- Date established
- Corporate Address
- N1, Level 4, Airlines Office
Main Terminal Building
Kuala Lumpur International Airport
64000, Sepang, Selangor Darul Ehsan
- Main hub
- Kuala Lumpur International Airport
- Business model
- Low Cost Carrier
- 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.
187 total articles
29 total articles
Malaysia Airlines (MAS) continues to incur large losses as the flag carrier tries to rebuild confidence in the aftermath of the MH370 and MH17 incidences. Yields remain at unsustainable levels due to the combination of challenging market conditions and the lingering impact of MH370 and MH17.
MAS has not yet cut capacity and is instead focusing on trying to woo passengers through promotional fares. While the flag carrier has completed several initial milestones from the recovery plan initially outlined in late Aug-2014 it will take several more months for the main components of the plan to be implemented.
Bigger changes are inevitable starting in 2H2015. But adjustments to capacity levels and the carrier’s fleet could be smaller than anticipated.
AirAsia X joins AirAsia in slowing expansion in challenging Malaysia market; cuts Australia capacity
AirAsia X has joined sister low-cost group AirAsia in slowing its expansion in the Malaysian market by selling aircraft, deferring deliveries and wet-leasing excess capacity. The two Malaysian subsidiaries of the AirAsia/AirAsia X groups combined now only plan to add one aircraft, an A320, in 2015.
The adjustments should help drive improvements in yields and profitability. AirAsia X incurred a loss for the fourth consecutive quarter in the 3Q2014 while AirAsia saw its profits slip again - although remaining among the most profitable in the region.
AirAsia and AirAsia X are wisely not holding out for a restructuring at rival Malaysia Airlines (MAS), which at least for the time being is not pursuing any significant reductions to capacity. AirAsia X, which recorded 42% ASK growth in the first three quarters of 2014, will now only increase ASKs in the Malaysian market by 5% in 2015.
Malaysia’s Malindo Air further expands domestic and Indonesia networks, pressuring Firefly & AirAsia
Malaysian hybrid carrier Malindo Air is doubling its Indonesian network during 4Q2014 with three new routes that leverage its relationship with 49% shareholder Lion Group. Malindo recently launched services to Medan - its fourth destination in Indonesia after Jakarta, Bali and Batam - and will add Pekanbaru in Nov-2014 followed by Bandung in Dec-2014.
Malindo is also expanding its domestic network and will soon serve more airports in peninsular or west Malaysia, 12, than any other carrier. Malindo recently added Ipoh as its 10th destination in peninsular Malaysia and will launch services at Malacca and Kerteh in Nov-2014.
Kerteh will become Malindo’s ninth domestic route from its fast growing turboprop base at Kuala Lumpur Subang. In comparison Malaysia Airlines (MAS) regional subsidiary Firefly currently operates seven domestic routes from Subang although it has a bigger international network and is still the leading airline overall at Subang.
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.
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 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.