- CAPA Analysis
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- Fast Fact Report
- Airline Status
- 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
- Full Service Carrier
- Domestic | International
- Airline Group
- Part of Lion Group
- Frequent Flyer Programme
- Malindo Miles
- Association Membership
Malindo Air is a full service carrier 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)
310 total articles
42 total articles
Senai International Airport in the southern Malaysian state of Johor is poised for more rapid growth as AirAsia expands its Senai base. Senai was the fastest-growing of Malaysia’s eight largest airports in 2015, recording 11% passenger growth while the overall market expanded by less than 1%.
AirAsia launched services from Johor to Hat Yai at the beginning of Apr-2016 and is launching services from Johor to Guangzhou in May-2016. The new routes expand AirAsia’s international operation at Senai to seven routes and are part of an overall initiative by the LCC group to expand its secondary hubs, with more point-to-point links.
Malindo Air is also pursuing expansion at Johor in May-2016 by resuming services from Johor to Kuala Lumpur International, a route it briefly served in late 2013. Malaysia’s other main airline group, Malaysia Airlines, is considering possible new point-to-point routes from Johor following the recent opening of a crew base at Senai.
Indonesia’s Lion Group is preparing to build up its presence in the international market after focusing almost entirely on domestic operations in its initial 15 years. Lion is the largest domestic airline group outside China and the US, but has a small international operation that is only about the size of Poland’s LOT.
In a precursor to international expansion, the group has been raising its standards and seeking IOSA certification for all five airlines in its portfolio. Its Indonesian subsidiaries are also now in the process of securing an exemption from the EU blacklist.
IOSA certification and EASA approval should make it easier for the airlines under the Lion Group to secure approval from civil aviation authorities in several countries. It should also strengthen the Lion brand overseas and facilitate new codeshare partnerships.
Malaysia’s Malindo Air to pursue faster expansion following rebranding and fully embracing FSC model
Malaysia’s Malindo Air is accelerating expansion as it prepares for a rebranding aimed at firmly positioning the Lion Group affiliate as a full service airline. Malindo now plans to add 10 Boeing 737s in 2016 and end the year with a fleet of 37 aircraft, including 26 737NGs and 11 ATR 72-600s.
Malindo has been rapidly expanding its international network, adding seven destinations over the last four and a half months. It plans further expansion of the network in 2016 including potential new destinations in Australia, South Korea and Japan, which would be served as part of one-stop fifth freedom routes via Indonesia and Taiwan.
However, Malindo will implement a brief hiatus from expanding its international network over the next few months, instead focusing on capacity increases and schedule changes to existing destinations. Malindo is also now focusing on its 15-Mar-2016 move back to Kuala Lumpur International Airport’s original terminal (KLIA1), which will reinforce its full service position and support a new brand being rolled out in mid-2016.
Southeast Asia’s low cost carrier fleet has passed the 600 aircraft mark as the region’s 23 LCCs added about 70 aircraft in 2015, resulting in 13% growth. The region’s LCC fleet has expanded by 50% in only three years, from 400 to just over 600 aircraft.
Nevertheless, LCC capacity growth within Southeast Asia slowed significantly in 2015 for the second consecutive year, as several carriers made adjustments in response to challenging market conditions. For the first time since the birth of LCCs in Southeast Asia 15 years ago there was a drop in the LCC penetration rate within Southeast Asia.
There was faster LCC capacity growth in medium/long haul markets connecting Southeast Asia with other regions, driven by a 37% expansion of the Southeast Asian LCC widebody fleet. There are now seven LCCs in Southeast Asia operating widebody aircraft, compared with only seven in the rest of the world.
Indonesia's Lion Group continued to expand its fleet rapidly in 2015 as several of its competitors in Southeast Asia slowed growth or restructured. Lion added a remarkable 57 aircraft in 2015 – its highest figure ever – and ended the year with 236 aircraft.
In doing so Lion overtook AirAsia as the largest airline group in Southeast Asia, growing its fleet by 32% in 2015 while the AirAsia fleet shrank slightly. The Lion Group is expected to add a similar number of aircraft in 2016, further widening the gap with AirAsia.
All five Lion Group carriers grew their fleets in 2015 by at least seven aircraft. Lion currently has 191 aircraft in its home market of Indonesia, 27 in Malaysia and 18 in Thailand.
Malaysia’s Malindo Air is planning further rapid expansion of its international network in 2016 as five to six additional 737-800s are delivered. The Lion Group affiliate is launching two new international destinations in early 2016 and plans to add at least two more in 1H2016, extending its international network to at least 22 destinations.
Greater China will be the biggest focus for 2016 with Hong Kong, Taipei, Wuhan, Kunming and Guangzhou joining Sanya, which became Malindo’s first Chinese destination on 20-Dec-2015. But Malindo is also planning to expand in the Indochina region, starting with Ho Chi Minh on 29-Jan-2016.
A new phase of international expansion will kick in in 2017 as the first batch of 737 MAX aircraft are placed into service, opening up new longer medium haul routes to northern China, Korea and Japan. Malindo is also now looking at potentially acquiring A330s, which would be used to add destinations deeper into Australia to supplement newly launched Perth and begin non-stop routes to Middle East. Malindo plans to begin serving Jeddah in 2016 but initially with a one-stop product using its existing 737 fleet.