Indonesia's Lion Air has become the latest low-cost Asian carrier to seek to expand through the establishment of joint-venture associate airlines in other countries.
Lion president director Rusdi Kirana says the fast-growing carrier has set its sights on establishing joint-venture airlines in Australia and Thailand with local partners. Rusdi says six aircraft are to be based in Australia and the new airline, Lion Air Australia, will be established as a joint venture with Australian charter carrier SkyAirWorld, which will own 51%. He adds that four aircraft will be based in Thailand, where Lion Air Thailand will be established with an unidentified partner.
SkyAirWorld, which launched operations as a charter airline last year from its Brisbane base using Embraer regional jets, says Lion Air Australia is expected to launch operations later this year. It says the new carrier "will be connecting points not currently serviced and creating a fantastic new offering for the travelling public". Industry observers in Australia expect it to start with international services to points in Indonesia and elsewhere in Southeast Asia, possibly expanding into domestic operations later.
"Routes, fares and frequencies are under development, but Lion Air Australia will be a good-value carrier including business and premium economy seats," it adds.
Lion has grown rapidly within Indonesia in recent years and is expanding its fleet with Boeing 737-900ERs from orders for 122 of the type. Other fast-growing Asian low-cost airlines such as Malaysia's AirAsia and Singapore's Tiger Airways have in recent years established airlines in other countries in the region.
AirAsia now has associate carriers in Indonesia and Thailand and is planning a new airline in Vietnam, while Tiger recently launched a domestic carrier in Australia and is planning to set up associate airlines in the Philippines and South Korea.
Lion Air Australia will be a good-value carrier, including business seats
Source: Airline Business
