Indonesia-Malaysia aviation market: rapid growth as AirAsia, Lion Group and Malaysia Airlines expand
Indonesia-Malaysia is a large and dynamic market, with intense competition between the leading Southeast Asian airline groups AirAsia and Lion. The AirAsia Group and Lion Group combined have close to 550 weekly one-way flights from Indonesia to Malaysia, or nearly 80 per day, and account for 70% of total capacity.
AirAsia Group and Lion Group both added flights in the Indonesia-Malaysia market in 2017, driving a more than 20% increase in total Indonesia-Malaysia capacity. The market leader, AirAsia, grew at slightly less than 20%, and Lion Group grew at a more ambitious 40%, but on a much smaller base, as its Batik Air subsidiary entered the market with four routes.
Malaysia Airlines, the third largest player, also resumed expansion in 2017 by relaunching services to Surabaya. Malaysia Airlines is planning further expansion in the Indonesia-Malaysia market in 2018, as are AirAsia Group and Lion Group.
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