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Tiger's Indonesian affiliate Mandala starts to pursue faster expansion but faces tall order

Analysis

Tiger Airways Indonesian affiliate Mandala Airlines has unveiled further network expansion plans as it aims to establish a meaningful presence in Indonesia's fast-growing domestic and international markets. The carrier has grown slowly - extremely slowly for Indonesian standards - since resuming services in Apr-2012, following a 15-month suspension.

Slightly faster growth is now being pursued, with three routes being added in Jan-2013 following the launch of four routes in Dec-2012. But Tiger and Mandala will need to invest in accelerated growth if it is to become a significant player in the dynamic Indonesian market.

With the latest expansion Mandala will operate 11 routes - seven international routes and four domestic routes - with a fleet of five Airbus A320s. Further expansion is expected over the next six months as Mandala doubles its fleet to 10 A320s, meeting an Indonesian DGAC requirement for all airlines to have at least 10 aircraft, including five owned.

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