New low-cost carrier to rival AirAsia
Publish date: Tue, 11 Sep 2012, 02:30 PM
PT Lion Mentari Airlines will set up a low-cost carrier in Malaysia, challenging AirAsia Bhd, the region's biggest discounter, in its home market.
Malindo Airways will begin flights in May and may have about 100 planes within a decade, Ahmad Johan, president of National Aerospace and Defense Industries Sdn., told reporters in Kuala Lumpur today. National Aerospace will own 51 percent of the new airline, with Indonesia-based Lion Air holding the rest.
The carrier pits Boeing Co.'s record customer against the biggest buyer of Airbus SAS narrow-body planes as Lion Air and AirAsia compete for budget travelers in Asia. The region's total air-travel may grow 6.4 percent a year through 2031 because of economic growth, according to Boeing.
"We are looking at selling tickets at AirAsia's pricing or may be lower," Lion Air President Director Rusdi Kirana said today. Malindo Air plans to fly to countries including Thailand, China, India, Japan and Australia, besides offering services within Indonesia and Malaysia, he said.
Lion Air signed a record order for 230 Boeing 737s in February, which was worth $22.4 billion at list prices. The deal, which also included 150 options, was Boeing's biggest in terms of dollar value and plane numbers. The carrier flies to more than 36 destinations within Indonesia and overseas, according to its website.
100 Planes
The airline has forecast passenger growth rates of 15 percent a year as it adds more planes. Its fleet may expand to 470 planes by 2025, Kirana said in November. The carrier has 100 planes now. Malindo Air will draw its fleet from planes Lion Air Group has ordered, including the 787s for possible Europe flights, Kirana said today.
AirAsia has grown into Asia's biggest discount airline since begin take over by Tony Fernandes and partners in 2001. The carrier, based in Sepang, Malaysia, has subsequently set up ventures in the Philippines, Japan, Thailand and Indonesia.
The airline last year ordered 200 Airbus A320neo aircraft valued at $18 billion in the biggest order for the French planemaker. It may sign a deal for as many as 100 more A320s at the Berlin Air Show, which starts today, Chief Executive Officer Aireen Omar said last month.
Jetstar, the budget arm of Qantas Airways Ltd., is also building up a network of low-cost carriers across Asia. The airline already has ventures in Singapore, Vietnam and Japan, and it's setting up another in Hong Kong.
Batik Air, Lion Air's long-haul carrier, will begin operations in March with six Boeing 737s and five 787s, the company said today. - Bloomberg
Malindo Airways will begin flights in May and may have about 100 planes within a decade, Ahmad Johan, president of National Aerospace and Defense Industries Sdn., told reporters in Kuala Lumpur today. National Aerospace will own 51 percent of the new airline, with Indonesia-based Lion Air holding the rest.
The carrier pits Boeing Co.'s record customer against the biggest buyer of Airbus SAS narrow-body planes as Lion Air and AirAsia compete for budget travelers in Asia. The region's total air-travel may grow 6.4 percent a year through 2031 because of economic growth, according to Boeing.
"We are looking at selling tickets at AirAsia's pricing or may be lower," Lion Air President Director Rusdi Kirana said today. Malindo Air plans to fly to countries including Thailand, China, India, Japan and Australia, besides offering services within Indonesia and Malaysia, he said.
Lion Air signed a record order for 230 Boeing 737s in February, which was worth $22.4 billion at list prices. The deal, which also included 150 options, was Boeing's biggest in terms of dollar value and plane numbers. The carrier flies to more than 36 destinations within Indonesia and overseas, according to its website.
100 Planes
The airline has forecast passenger growth rates of 15 percent a year as it adds more planes. Its fleet may expand to 470 planes by 2025, Kirana said in November. The carrier has 100 planes now. Malindo Air will draw its fleet from planes Lion Air Group has ordered, including the 787s for possible Europe flights, Kirana said today.
AirAsia has grown into Asia's biggest discount airline since begin take over by Tony Fernandes and partners in 2001. The carrier, based in Sepang, Malaysia, has subsequently set up ventures in the Philippines, Japan, Thailand and Indonesia.
The airline last year ordered 200 Airbus A320neo aircraft valued at $18 billion in the biggest order for the French planemaker. It may sign a deal for as many as 100 more A320s at the Berlin Air Show, which starts today, Chief Executive Officer Aireen Omar said last month.
Jetstar, the budget arm of Qantas Airways Ltd., is also building up a network of low-cost carriers across Asia. The airline already has ventures in Singapore, Vietnam and Japan, and it's setting up another in Hong Kong.
Batik Air, Lion Air's long-haul carrier, will begin operations in March with six Boeing 737s and five 787s, the company said today. - Bloomberg
Discussions
Be the first to like this. Showing 18 of 18 comments
There is something called Google...
http://www.bloomberg.com/news/2012-09-11/lion-air-challenges-airasia-with-malaysian-low-cost-carrier.html
2012-09-11 16:35
Yessssssssssssssssss!!
1. Malindo Airways will be based at KLIA2 & will start operations in May 2013 with a fleet of 12 Boeing 737-900ER aircraft.
2. Fire Fly may revive jet operations next year.
Now more people can fly!!!
2012-09-11 17:14
Offcourse the JV will stay............
1. NADI has Maintenance, Repair and Overhaul expertise and ample space in Subang. Lion Air has 100 over aircraft in operation and some 600 more on order.
2. Lion Air is restricted to a degree by congestion at Sukarno-Hatta which has resulted in it not being able to improve its dispatch reliability. Moving some of its aircraft to KLIA will solve part of the problem. KLIA has ample space with the construction KLIA2 low-cost terminal;
3. AirAsia could mount a response by using its Jakarta Asean Hub. So will Airasia do that?
Time will tell!!!!!
2012-09-11 20:03
Good news as more people will be able to fly!!!
1. Firefly, a subsidiary of MAS, is believed to be returning to its jet operations as early as next year.
2. It had to abandon its money-making routes to Sabah and Sarawak following the nowaborted MAS-AirAsia strategic collaboration exercise.
3. Firefly & Malindo Airways will fill the vaccum created by Air Asia here when it moved out its regional office to Jakarta.
2012-09-11 21:05
The moral of the story buy MAS counter.
1. Some 10% of the existing overstaff MAS will be transfered/seconded to Firefly when it starts the jet services.
2. MAS engineering will be in position to secure the MRO businesses not only from Firefly but also Malindo Airways.
3. MAS long haul services will benefit with new LCCs excercise.
4. MAS is in re-negotiation of their contract on F&B with Skycafe. With new LCCs coming to KLIA2 there a chance the re-negotiation will be successful and favorable to both parties.
5. Skycafe which MAS is also a shareholder stands a good chance to secure F&B business from these new LCC.
So folks, dump AA and starts buying MAS.......hahhahahahahahah!!
All the best!
2012-09-11 22:17
bullbear..thanks for the fresh insight...i know mas already done number 1.
2012-09-12 07:08
From Wiki:
Lion Air (including its Wings Air subsidiary) is on the list of air carriers banned in the European Union due to safety concerns as of February 2012. The airline has applied multiple times for membership in The International Air Transport Association (IATA), but it has been denied due to several safety concerns.
The transportation ministry recorded that Lion Air's OTP of 66.45 percent was the worst of six airlines in an assessment conducted from January to April 2011 at 24 airports nationwide.
In January 2012, the Transportation Ministry said that it sanctioned Lion Air because some of its pilots and crew members were found in recent months to be in possession of crystal methamphetamine.
What a bad review statements...oh, not to mention with quite a few incidents and accidents here http://en.wikipedia.org/wiki/Lion_Air
2012-09-12 09:22
We are talking about Malindo Airways a JV of 51% NADI & 49% Lion Air and to be based at KLIA2.
Now a lot more people can fly!! YESSSSSSSSSSSSSSSSSS..
2012-09-12 09:50
for too long AA enjoyed the budget monopoly! competition is good for consumers! capitalism at work!
2012-09-12 09:55
"competition is good for consumers! capitalism at work!" -- Fully agree with this. Bring it on! To be fair, the government had better do something about MAS very soon and be firm about it. Then, with the local car industry. Let these be like the telecommunications industry. Remember the bad old days when it was so costly to make an outstation call? Or the various charges in owing a handphone? But thanks to competition, we have all benefited. Nowadays, even primary schoolchildren can own and maintain a handphone!
2012-09-12 10:02
1. Rusdi dismissed suggestions that Malindo Airways will be competing with AirAsia, the region's biggest low-cost carrier, in its home market.
2. "We are not competing, but rather complementing by bringing in more passengers. We are also looking at selling tickets at Air Asia's pricing, but with value-added services for passengers such as Wifi and inflight entertainment," he said.
3. Rusdi said Malindo Airways will fly out from few cities in Indonesia such as Medan, Pekan Baru, Makassar, Surabaya and Bali to Kuala Lumpur and Kota Kinabalu. The passengers will then be able to fly to other destinations like to Japan, China and India.
4. "We will use Jakarta and Bali as hubs for passengers flying from Malaysia to Australia," he said.
So folks, more people will fly Malindo Airways & Firefly however less will fly AA.
Haahahahahahahahahah!!
2012-09-12 10:35
To the cowboy traders here: could this sharp drop present an opportunity to "Menaguk di air keruh" with a few brave buys of the call warrants? But only if a rebound is likely. If it continues to slide, then the cowboys with warrants will be in trouble.
2012-09-12 11:02
its abt time aiasia to buck up n give more freebies n less ancillary charges...
Welcome Malindo... Welcome!
2012-09-12 11:05
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YESSS...YESSS...YESSS!!
Malaysia's new budget airline which would offer FULL SERVICE, meaning passengers or rather customers would be enjoying the normal services like food, seat assignment and oooh ya..that would most certainly include the aerobridge.
Basically the new Hybrid Airline would offer customers the normal expected service without any HIDDEN CHARGES and the FULL SERVICE comes much cheaper than conventional airlines like SIA or MAS.
The new airline will offer ticket prices lower or at least on par with that of another Malaysia lCC airasia.
Yessssssssssssssssssssssssssssssss!!
2012-09-11 16:26