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Lion Air’s Batik Air 2015 outlook: rapid expansion as competition with Garuda Indonesia intensifies

Analysis

Batik Air, the world's first full service subsidiary of an LCC group, is planning rapid expansion in 2015 as it steps up competition with Garuda Indonesia. Batik should be able at least to double its share of the Indonesian domestic market in 2015 while also entering the international market.

Batik did not meet its initial growth targets for 2014 due in part to aircraft delivery delays. But Batik has now caught up on deliveries, after taking 10 aircraft in 4Q2014, and is steadily building up its network.

The Lion Group full-service subsidiary currently serves 15 domestic destinations. It is planning to significantly grow its domestic network in 2015 as its fleet expands from 18 to nearly 40 aircraft.

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