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Malaysia’s Malindo Air to pursue faster expansion following rebranding and fully embracing FSC model

Analysis

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.

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