Melbourne-Bali market: Garuda, Jetstar and Lion Group respond to under-capacity by adding flights

The Melbourne-Bali market will experience a surge in capacity in 2018, driven by increases by Garuda Indonesia and Jetstar Airways and the launch of services from the Lion Group. Capacity will increase by nearly 50%, offsetting a 40% decline since capacity peaked at approximately 9,000 weekly one-way seats in mid-2016.

While several major Australia international routes have been suffering from overcapacity, Melbourne-Bali had the opposite issue in 2017. AirAsia X suspended the route in Sep-2016, and Tigerair Australia in early 2017, leaving Garuda and Jetstar as the only nonstop competitors.

Garuda and Jetstar have benefitted from load factor and yield increases, but the market clearly can support more capacity. Both airlines have responded by adding capacity in the current southern summer season, and Lion Group affiliate Malindo intends soon to become a third competitor.