- CAPA Analysis
- Schedule Analysis
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- 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) (51%) and Lion Air of Indonesia (49%). The carrier launched in mid Mar-2013 starting with domestic services and plans to launch a number of international routes to India and Bangladesh in future. The carrier operates a fleet of Boeing 737-900ER and ATR72-212 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)
55 total articles
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.
Malaysia’s Malindo Air is poised to have a momentous year in 2017, with more rapid expansion and a highly anticipated rebranding. Malindo plans to adopt the Batik Malaysia brand in early 2017, positioning it alongside Indonesia-based Batik Air as the two full service airlines in the Lion Group.
Malindo has been one of Asia’s fastest-growing airlines since it launched services in Mar-2013. It recently reached the 40-aircraft milestone, after adding an astonishing 13 aircraft in just six months. Malindo plans to end 2016 with a fleet of 42 and take at least 10 additional aircraft in 2017.
The focus in 2017 will mainly be on adding capacity to existing destinations, improving connectivity as it looks to drive more transit and interline traffic. However new routes to Australia, China and Saudi Arabia are planned in early 2017, followed by potential new routes to Japan, Korea and Pakistan later in the year – leveraging the improved range of the 737 MAX.
China Eastern Airlines, Malindo Air, Philippine Airlines and Spring Airlines scooped the airline awards at the 2016 CAPA Asia Pacific Aviation Awards for Excellence, held on 15-Nov-2016 in Singapore as part of the 2016 CAPA Asia Aviation Summit. BOC Aviation CEO Robert Martin received the executive award, while Mactan-Cebu was the airport winner and Air New Zealand won in the innovation category. Spring Airlines founding CEO and chairwoman Zhang Xiuzhi was recognised with the CAPA Legends Award (CAPA Hall of Fame).
Now in its fourteenth year, CAPA’s Aviation Awards for Excellence are intended to reward airlines and airports that are not only successful but have also provided industry leadership in an always changing environment. At a time of industry upheaval, our winners are adopting strategies that offer new directions for others to take.
Initially limited to Asia Pacific and the Middle East, the awards were expanded by CAPA in 2012 to include all regions. This year the Aviation Awards for Excellence were presented at two gala dinners – one for the global industry on 27-Oct-2015, and one for Asia Pacific including the Middle East on 15-Nov-2016.
Short haul LCC group AirAsia faces intensifying competition in its original home market of Malaysia. Malaysia AirAsia (MAA) is no stranger to fierce competition and has the cost structure to fight back, but the price might be a dilution of recent yield and load factor improvements.
MAA has benefitted over the last year from the restructuring of Malaysia Airlines and an improvement in overall market conditions. However, the new Malaysia Airlines is starting to emerge as a tougher competitor, with a new, more aggressive pricing strategy. Meanwhile Lion Group’s Malaysian JV Malindo Air is again accelerating expansion, targeting several of AirAsia’s most lucrative routes.
Over the past two months CAPA has published a comprehensive series of reports analysing the new strategy of the Malaysia Airlines Group, Malindo and AirAsia X. In this report CAPA examines the outlook for Malaysia’s largest airline, MAA.
Malaysia’s Malindo Air is focusing on partnerships both within and outside the Lion Group to help support accelerated growth. Malindo now accounts for approximately 8% of traffic at Kuala Lumpur International Airport (KLIA) and will soon link KLIA with over 30 destinations, making it attractive to foreign airlines seeking feed.
Malindo has implemented interlines with Turkish Airlines, Qatar Airways and Etihad Airways over the last four months. It is now in the process of implementing an interline agreement with Oman Air, and aims to have seven interlines in place by the end of 2016.
Malindo is also now working more closely with other airlines in the Lion Group. Malindo recently began selling connections beyond Bangkok on Thai Lion Air, and plans soon to begin selling connections beyond Jakarta on Batik Air.