Lion Air entry to trigger Australian airport bidding war

Tags :Airlines, Lion Air


(c) Centre for Asia Pacific Aviation, PREMIUM: Lion Air’s planned launch of services in Australia is expected to trigger an intense bidding war among the country’s airports, which are riding the wave of low-cost carrier entry.

Brisbane-based charter company, SkyAirWorld, which will hold 51% of Lion Air Australia and is sponsoring Lion Air Australia’s regulatory approval application, stated that no decisions had been made on where to base the airline. Lion Air hopes to be flying in Australia by the end of the year.

 

SkyAirWorld’s CEO, David Charlton, added that Brisbane Airport had “many attractions”. Other airports, including the Gold Coast, are expected to bid, while the carrier would also be  likely to seek state government support.

 

Lion Air Australia plans to connect points not currently serviced, “creating a fantastic new offering for the travelling public”. The carrier is expected to operate from multiple Australian ports to Indonesia and other cities in Asia.

 

The entry of another carrier into Australia could provide further downward pressure on fares, creating another spike in passenger traffic. Australian airports have enjoyed an almost doubling of passenger numbers in the past decade, with a 7.8% year-on-year increase in 2006/07.

 

Australian airports total revenue passengers: 1996/07 to 2006/07*

*Years ending June
Source: Centre for Asia Pacific Aviation & DoTARS

 

Six B737-900ERs have been allocated to the Australian venture, out of a total 122 of the type on order by the Indonesian airline, Lion Air, which will hold a 49% stake in Lion Air Australia.

 

The 215-seat aircraft have a 3,200 nautical mile (5925 km) range, opening the prospect for non-stop services to Asia and the Pacific Islands from Australia. Airports in those regions will also be watching Lion Air Australia’s progress with interest.

Other Lion Air News

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• 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