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Lion Group's Malindo Air opts for single class configuration on 737-8 as MAX deliveries begin

Analysis

Malaysia's Malindo Air has opted for an all economy 180-seat configuration for its new fleet of Boeing 737 MAX 8s, a decision which represents an unexpected strategic adjustment, given that it has been reinforcing its position as a full service airline. Malindo currently operates 29 current generation 737-800/900s in two class configuration on more than 30 international routes.

Malindo, which is part of Indonesia's Lion Group and will soon be rebranded as Batik Malaysia, plans to use its initial fleet of four 737 MAX 8s primarily on existing routes to South Asia and China that have limited premium demand. Dhaka in Bangladesh, Kathmandu in Nepal, and Lahore in Pakistan are among the initial regular routes for Malindo's MAX fleet. Kuala Lumpur-Singapore will be the first revenue flight for the MAX, scheduled for 22-May-2017, but this is a one off for ceremonial, rather than commercial, purposes.

Malindo, along with Southwest and Norwegian, are the launch customers for the MAX and deliveries to all three airlines are slated to begin by the end of May-2017. Malindo is the launch operator and will have five more seats in its 737 MAX 8s than Southwest, but nine fewer seats than Norwegian.

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