PT Lion Air and Malaysia's National Aerospace and Defence Industry (NADI) signed a JV agreement to establish a new low-cost airline, Malindo Airways, which is expected to start operations on 01-May-2013 at Kuala Lumpur International Airport 2 using a fleet of around 12 Boeing 737-900s, according to reports by Bernama and The Star Online, 11-Sep-2012). "The JV will see NADI holding a 51 per cent stake with the remaining shares belonging to PT Lion Air," PT Lion Air President Director Rusdi Kirana said. The carrier could have a fleet of around 100 aircraft within a decade, comprised of Boeing 737 and 787 aircraft, NADI president Ahmad Johan said and will draw its aircraft from Lion Air. On the carrier's pricing, Lion Air President Director Rusdi Kirana said, “We are looking at selling tickets at AirAsia’s pricing or may be lower”. The carrier will reportedly provide a hybrid product with its aircraft in a two class configuration - 12 in business class and 168 in economy. Malindo Air plans to operate to countries including Thailand, China, India, Japan and Australia, besides offering services within Indonesia and Malaysia. The airline will also have a secondary hub in Kota Kinabalu, according to Malaysian Prime Minister Datuk Seri Najib Tun Razak.
Lion Air and NADI form JV to form Malindo Airways
You may also be interested in the following articles...
Lion Group 2016 fleet analysis: slower growth following 737 cancellations & increased focus on FSCs
Lion Group significantly slowed its rate of expansion in 2016 and cancelled 21 Boeing 737 orders. The Indonesia-based airline group took 36 aircraft in 2016 compared to 57 aircraft in 2015, as the rate of 737 deliveries was slashed in half from an average of two per month to one per month.
Most of the growth in 2016 was at Lion Group’s two full service airlines, Indonesia’s Batik Air and Malaysia’s Malindo Air. Malindo expanded its fleet by a staggering 15 aircraft, for a total of 42, making it one of the fastest-growing airlines in the world. Batik expanded its fleet by eight aircraft in 2016, for a total of 41.
The rate of expansion slowed at all three of Lion Group’s low cost airlines – Lion Air, Thai Lion Air and the turboprop operator Wings Air. The fleet at the main Lion Air brand only expanded by three aircraft, while Wings added four turboprops. The group’s JV in Thailand added six aircraft, which was fewer aircraft than initially planned.
Southeast Asia Fleet Outlook:
Southeast Asia, along with the Middle East, are the only two regions with as nearly as many aircraft on order as in the active fleet. Southeast Asian airlines currently have nearly 1700 aircraft on order compared to an active fleet of approximately 1800 aircraft.