- CAPA Analysis
- Schedule Analysis
- Cargo Analysis
- Route Maps
- Fast Fact Report
- Airline Status
- IATA Code
- ICAO Code
- Corporate Address
- Jl. Gadjah Mada No.7, Jakpus, Jakarta Raya, Indonesia
- Main hub
- Jakarta Soekarno-Hatta International Airport
- Business model
- Low Cost Carrier
- Domestic | International
- Airline Group
- Part of Lion Group
- Frequent Flyer Programme
- Lion Air Passport Club
- Association Membership
- Indonesian National Air Carriers Association (INACA)
Lion Air is an Indonesian low-cost carrier based at Jakarta-Soekarno-Hatta International Airport. Commencing operations in 2000 and based in Jakarta, Lion Air is the largest privately-owned airline in Indonesia. The LCC operates a network of scheduled passenger services throughout South East Asia and the Middle East.
Location of Lion Air main hub (Jakarta Soekarno-Hatta International Airport)
LCCs will continue to evolve into hybrids of the original core model. CAPA and OAG consider Lion Air fits the LCC profile and it is included in our reporting on this basis. Please note: when reporting for an airline is changed from or to LCC the historical data is not affected and it can lead to a distortion in the current reported data. Contact us if you have any queries.
106 total articles
Lion Air Group begins international expansion from Indonesia with Batik Air Australia & India routes
The Lion Group is preparing to expand in Indonesia’s international market, with several new routes to Australia, India and East Asia. Lion is the domestic leader in Indonesia, its three Indonesian airline subsidiaries accounting for approximately half of total domestic capacity. However, the group has only a tiny presence in the Indonesian international market, having only five scheduled international destinations.
The full service subsidiary Batik Air has encountered delays in commencing operations to Australia and India but remains keen on serving both markets with multiple destinations. Meanwhile, its Malaysian affiliate Malindo Air is jump starting the group’s entrance in the Indonesia-Australia market with a new fifth freedom route from Bali to Brisbane, which will be launched on 31-Mar-2017.
International expansion is becoming strategically necessary for Lion as Indonesia’s international market is now growing faster than the much larger domestic market. AirAsia and Garuda have already been focusing more on international expansion, widening their lead over Lion in Indonesia’s international market.
AirAsia Group fleet analysis: expansion to resume in 2017 with 32 deliveries including 15 new leases
The AirAsia Group is accelerating expansion in 2017 after deciding to lease 15 additional A320ceos which were not previously in its fleet plan. AirAsia now plans to take delivery of 32 A320s in 2017 (11 A320neos and 21 A320ceos) while returning three aircraft, for a net gain of 29 aircraft, marking its biggest expansion since 2013.
The AirAsia Group took delivery of only 10 aircraft in 2016 and originally was planning to take delivery of just 10 aircraft again in 2017. It initially slowed its fleet growth in 2015, with four deliveries, after several years of rapid double digit fleet expansion.
The AirAsia Group’s active fleet grew by only two aircraft in 2016 and shrank by two aircraft in 2015, when aircraft sales, leases outside the group and lease returns are taken into account. Fleet growth peaked in 2013 with 36 aircraft, before initially slowing to 18 aircraft in 2014 as market conditions became more challenging.
Lion Group is planning major expansion in Australia using its full service brand Batik Air. The group’s Australia operation could grow from one route currently to five routes by the end 2017, and potentially 10 routes by the end of 2018.
Lion Group launched services to Australia in late 2015 when its Malaysian full service airline, Malindo Air, launched services from Kuala Lumpur to Perth. Malindo is planning to adopt the Batik Malaysia brand in 2017 and expand its Australia network.
Meanwhile Indonesia’s Batik Air is preparing to launch services to Australia, initially with flights from Bali to Perth. The fast-growing Indonesian airline secured Australian Civil Aviation Safety Authority (CASA) approval in late 2016 and could eventually serve several destinations in Australia from both Bali and Jakarta.
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.
Indonesia-based Lion Group expanded its fleet by 16 aircraft in 1H2016, cementing its position as the largest airline group in Southeast Asia. Lion now has a fleet of more than 250 aircraft while its rival AirAsia – the region’s second largest group – has under 200 aircraft based in Southeast Asia.
However a net gain of 16 aircraft over the last six months marks a slowdown for Lion. The group’s fleet grew by 59 aircraft in 2015 and 39 aircraft in 2014.
None of Lion Group’s five airline subsidiaries or affiliates added more than five aircraft in 1H2016, resulting in relatively modest capacity expansion. The rate of expansion will likely pick up in 2H2016 but not approach previous levels.
Garuda Indonesia is slowing its domestic expansion at its main full service brand while accelerating domestic expansion at the LCC subsidiary – Citilink. Garuda is considering the transfer of secondary leisure-focused domestic routes to Citilink and for the first time may start codesharing with its sister airline, which until now has focused on operating alongside Garuda on trunk routes.
The Garuda group has tweaked its domestic strategy in response to both intensifying competition from the Lion Group subsidiary Batik Air, and an overall slowdown in domestic growth. Batik is a full service airline but has impacted Citilink as its fares are generally priced only slightly above Citilink's fares, and significantly below those of Garuda. Citilink slipped back into the red in 1Q2016 after six consecutive profitable quarters.
Citilink is essentially now sandwiched between Lion, which generally has the lowest fares in Indonesia, and Batik. Garuda believes that it needs to respond by expanding Citilink rapidly, resulting in market share gains and lower unit costs as it starts to achieve better economies of scale.