Lion Air to launch Australian and Thai operations

Tags :Airlines, Lion Air


Lion Air, the Indonesian airline with 122 B737-900ERs on order, has confirmed plans to launch Lion Air Australia and Lion Air Thailand subsidiaries shortly. A spokesman for the airline recently stated “we cannot put that many airplanes in Indonesia alone”.

 

The airline has reportedly reached an agreement to acquire 49% of an unnamed Australian company and base six aircraft in Australia - one more aircraft than Tiger Airways' start-up fleet in Australia.

 

An Australian base has not been announced, but would be hotly contested by the country's airports.

 

"The move would provide a further influx in capacity to already highly competitive domestic markets in Australia and Thailand. The traveling public would be the main winners from further downward pressure on fares, if Lion Air is successful in launching operations in both countries", said Centre for Asia Pacific Aviation spokesman, Derek Sadubin.

 

Last year, Lion Air stated it was interested in investing in Vietnam, Bangladesh, Malaysia and the Philippines. The airline envisaged investing USD50-100 million in each venture, to be funded from “internal and external sources”.

 

However, according to Lion Air President Director, Rusdi Kirana, the Australian firm came with immediate offer that it “could not resist”.

 

Meanwhile, four aircraft are earmarked for the Thai operation.

 

A target date for the establishment of both companies was not disclosed. Lion Air is scheduled to take delivery of its 122nd B737-900ER in 2014 and is receiving aircraft at the rate of one per month in 2008.

Other Lion Air News

• Lion Air takes delivery of first Boeing 737NG with Honeywell
• Boeing, Lion Air Celebrate 10th 737-900ER Delivery
• Lion Air, Boeing announces order for 56 B737s
• Lion Air to form Malaysian subsidiary, Lion Langkawi
• Lion Air entry to trigger Australian airport bidding war
• Lion Air to launch Australian and Thai operations