- CAPA Analysis
- Schedule Analysis
- Route Maps
- Fast Fact Report
- Airline Status
- IATA Code
- Date established
- Corporate Address
- N1, Level 4, Airlines Office
Main Terminal Building
Kuala Lumpur International Airport
64000, Sepang, Selangor Darul Ehsan
- Main hub
- Kuala Lumpur International Airport
- Business model
- Full Service Carrier
- Domestic | International
- Airline Group
- Part of Lion Group
- Frequent Flyer Programme
- Malindo Miles
- Association Membership
- Codeshare Partners
- Batik Air
Malindo Air is a full service carrier formed as a joint venture between Malaysia's National Aerospace and Defence Industries (NADI) and Lion Air of Indonesia. The carrier launched in mid Mar-2013 starting with domestic services and is rapidly expanding international network. The carrier operates a fleet of Boeing 737 and ATR72 aircraft from its Kuala Lumpur hubs. Malindo Air is preparing for a rebranding exercise which should improve awareness of its model and full service product offering. The airline has been planning to adopt the Batik Malaysia brand since mid-2016 but has faced regulatory delays and is now aiming finally to rebrand in early 2017. Lion Group aims to use Malindo, soon to be Batik Malaysia, as its main international airline, transferring passengers from throughout Indonesia onto Malindo's network via Kuala Lumpur International Airport.
Location of Malindo Air main hub (Kuala Lumpur International Airport)
59 total articles
AirAsia is resuming domestic expansion in the Malaysian market with a focus on connecting more dots within its network of 15 domestic destinations. The LCC is launching or resuming three domestic routes from Johor Bahru in late Apr-2017 and has lodged applications for four more new domestic point-to-point routes.
By the end of 2017 AirAsia is also aiming to take over a few domestic routes within east Malaysia that are now exclusively operated by the Malaysia Airlines Group turboprop subsidiary MASwings. The routes are part of the Malaysian government’s subsidised rural air services (RAS) programme, but are potentially big enough to support larger aircraft on a commercial basis. The Malaysia Airlines Group is preparing to reduce its ATR 72 turboprop fleet further following anticipated changes to the RAS programme, which is coming up for renewal this year.
AirAsia is the leading domestic airline in Malaysia and has 50% of its total seat capacity allocated to the domestic market. However, AirAsia’s domestic capacity has been flat the last three years as it has focused entirely on international expansion.
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.
Lion Air Group's Malaysia based Malindo is planning further rapid expansion of its international network over the next month, with four new destinations. The upcoming launch of Brisbane, Chittagong, Guangzhou and Yangon will give Malindo 33 international destinations in Apr-2017, compared to 29 currently and only 21 in Apr-2016.
Malindo Air has also added a remarkable 18 aircraft over the past year, growing its fleet from 27 aircraft in Apr-2016 to 45 aircraft currently. Malindo is planning to expand its fleet by at least 10 aircraft in 2017, including its first widebodies. Three A330-300s will enable Malindo to launch Melbourne or Sydney in 4Q2017, along with other potential medium haul routes such as Kuala Lumpur-Tokyo that cannot be operated with its current 737 fleet.
Malindo plans to add at least another five international destinations over the last eight months of 2017. The Lion Group affiliate should surpass 40 international destinations in late 2017 or early 2018, giving it as many international destinations as Malaysia Airlines.
Growth in Malaysia’s dynamic aviation market is set to accelerate in 2017 owing to aggressive expansion by all four of the main Malaysian carriers – AirAsia, AirAsia X, Malaysia Airlines and Malindo Air. The total passenger fleet in Malaysia is projected to grow 11% in 2017, and passenger growth could reach 15% as average aircraft utilisation rates at most of the airlines also increase.
The Malaysian market grew by 7% in 2016, to approximately 68 million passengers. Malindo Air captured the most growth, accounting for nearly half of the additional passengers. The Lion Group affiliate is again poised to account for nearly half of the total passenger growth in 2017, with more than four million additional passengers, although Malaysia Airlines, AirAsia and AirAsia X are also likely to carry at least one million additional passengers each.
Heavy discounting will be required in order to fill the additional seats and meet load factor and traffic targets. Fares in Malaysia are already very low and yields could decline further, particularly in 2H2017 when most of the additional aircraft are slated to be delivered.
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.