Sriwijaya Air and regional subsidiary Nam Air to expand in 2016, fighting off Garuda and Lion

The Indonesian airline group Sriwijaya is planning further expansion in 2016, with a focus on regional growth using its Nam Air subsidiary. Sriwijaya will take several additional Boeing 737-800s in 2016 enabling it to transfer smaller 737-500s to Nam which will be used to open new secondary bases and compete against the expanding regional operations of Garuda and Lion.

Privately owned Sriwijaya has emerged as Indonesia's third largest airline group, well behind Garuda and Lion but ahead of AirAsia. Surviving an extended period of consolidation and challenging market conditions has strengthened Sriwijaya, leading to a brighter outlook.

Sriwijaya has been profitable for the last two years and is confident that it can stay in the black and maintain its current position in the market. However, it will always face the risk of being squeezed out by Garuda and Lion.