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Lion Group and Turkish Airlines could fill the void in Australia-Bali market as AirAsia X withdraws

Analysis

Competition could again intensify on Australia-Bali routes, despite the upcoming withdrawal of AirAsia X. The long haul low cost group drove 7% growth in the Australia-Bali market in 2015 but is suspending services to Bali from Melbourne and Sydney at the end of Aug-2016.

The Lion Group and Turkish Airlines are both looking to launch services between Bali and Australia, which could potentially fill the void left by AirAsia X in the Bali to Melbourne and Sydney markets. The Lion Group could also fill the void in the Bali-Brisbane market left by Garuda Indonesia, which suspended services to Brisbane in early 2015.

The Australia-Bali market has grown steadily and nearly quadrupled in size over the last decade. However competition is intense, making it difficult for any new entrant - as AirAsia X discovered.

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