Malaysia aviation: Malindo resumes growth after two year pause

Lion Group's Malaysian affiliate, Malindo Air, is resuming expansion over the next few months as it adds at least three 737s and launches several new international routes. Malindo is expanding in the Indonesia-Australia and Taiwan-Japan markets using fifth freedom rights and is also adding new services from Malaysia to China, India and Vietnam.

Malindo launched operations on 22-Mar-2013 and pursued rapid growth in the first three years. However, over the past two years the airline has cut capacity by around 15% and transferred eight of its aircraft to sister airlines outside Malaysia.

Malindo has significantly reduced its presence in Malaysia's domestic market and virtually stopped pursuing expansion in Malaysia's international market. While capacity growth is now resuming, the airline is reducing its reliance on the highly competitive Malaysian market by pursuing fifth freedom routes.