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- 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
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.
111 total articles
17 total articles
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 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.
Malindo Air launches India, further shaking up Kuala Lumpur market for Malaysia Airlines and AirAsia
Malaysia’s Malindo Air is moving forward on its delayed expansion plans for India with four new routes which will quickly give the Lion Air Group affiliate a 15% share of the Malaysia-India market. Malindo is seeking to become a major player in the Malaysia-India market as well as offer connections in the fast growing Indonesia-India market.
Malindo is targeting the Kuala Lumpur-Delhi and Kuala Lumpur-Mumbai routes, which currently are only served by Malaysia Airlines (MAS). It will compete against AirAsia to Tiruchirappalli and will become the only carrier linking Kuala Lumpur with Ahmedabad.
The hybrid carrier is also adding a second destination in Bangladesh, Chittagong, as part of its push into South Asia. By its first anniversary in late Mar-2014, Malindo will account for 12% of total capacity between Malaysia and South Asia.
Asia’s newest low-cost carrier, Thai Lion Air, is planning further expansion in early 2014 in Thailand’s increasingly competitive domestic and international markets. The expansion will provide new competition for Thai AirAsia, leading to more overlap between the AirAsia and Lion groups.
All of Thai Lion’s current and planned routes are AirAsia strongholds. Thai Lion has already disrupted the three routes it currently operates by bringing down fares.
The shake-up will be extended to several other routes in 2014 as Thai Lion quickly expands its fleet from two to 10 aircraft. But Thai AirAsia, which also plans to add eight aircraft in 2014, will remain a much larger carrier and is well positioned to respond to the challenge as it has a stronger and more established brand.
Malaysia Airlines (MAS) plans more rapid expansion over the short to medium term albeit at a slower rate compared to the torrid 20% capacity growth recorded for 3Q2013. The carrier – which has been expanding its domestic, short-haul international and long-haul international operations at similar rapid clips in 2013 – will focus in 2014 primarily on regional international growth.
MAS has been able to grow passenger traffic so far this year by 28%, including a 37% jump in 3Q2013, easily outstripping the large increase in capacity. But the load factor improvements have come at the expense of yield, pushing MAS back into the red in 3Q2013.
The flag carrier hopes it can eventually improve yields across both cabins, leveraging the improvements in its product and new membership in oneworld. But the intense competition in Southeast Asia could make it difficult to achieve higher yields, clouding the carrier’s outlook.
Indonesia’s Lion Air Group is aiming to launch a new affiliate in Thailand by the end of 2013 with an initial fleet of two 737-900ERs based at Bangkok Don Mueang Airport. The new carrier, Thai Lion, will follow the low-cost model and, unlike Lion’s Malaysian subsidiary Malindo, provide an all-economy no-frill service.
Thai Lion will initially serve two international routes – Kuala Lumpur and Jakarta – and Thailand’s second largest domestic route, Bangkok-Chiang Mai. With Kuala Lumpur and Jakarta, Thai Lion will be able to leverage the hubs of its sister carriers.
The new carrier will compete primarily against Thailand’s two existing LCCs, Thai AirAsia and Thai Airways' low-cost affiliate Nok Air. Both are based at Don Mueang and serve Chiang Mai while AirAsia is the market leader between Bangkok and Kuala Lumpur and also serves Bangkok-Jakarta.
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