Skip to main content

Indonesia’s Lion Air setting up regional low-cost carrier in Malaysia in aggressive expansion


KUALA LUMPUR, Malaysia — Indonesia’s Lion Air said Tuesday it will set up a low-cost airline in Malaysia that will take off in May 2013 as part of an aggressive regional expansion.
The move will see Lion Air, which controls nearly half the air travel market in Indonesia, playing catch-up to the region’s top budget carrier AirAsia. It follows AirAsia’s recent acquisition of Batavia Air in a bid to tap Indonesia’s 230 million population.
Lion Air will own 49 percent of the new airline, Malindo Airways, and Malaysia’s National Aerospace and Defence Industries the remaining 51 percent.
Lion Air President Rusdi Kirana said Malindo Airways will start flying between the two countries with a fleet of 12 new Boeing 737 planes in May, before expanding to other cities in Southeast Asia.
Malaysian Prime Minister Najib Razak said at the signing ceremony that air traffic in Asia-Pacific is expected to grow 6.7 percent annually in the next 20 years, from 780 million passengers in 2010 to some 2.2 billion by 2030. This will make up about 34 percent of global passengers, he said.
Najib said the formation of the new airline was a timely move to meet the burgeoning market demand and provide “healthy competition” in the budget air travel industry. Malaysian officials said the joint venture will also help the country reach its aim of becoming a regional aviation hub, competing with Singapore and Thailand.
For detail story visit here

Comments

Popular posts from this blog

Indonesia's Astra Pins Hopes on Inexpensive Cars

From Wall Street Journal Feb 14, 2013 PT Astra International plans to continue dominating Indonesia's booming car and motorcycle markets by spending billions of dollars on expansion and becoming the first auto maker to sell a car priced to reach the country's emerging middle class. Astra controls 54% of the passenger-car market through joint ventures with Japan's Toyota Motor Corp., Daihatsu Motor Co. and Isuzu Motor Ltd., and holds 58% of the motorcycle-and-scooter market through a joint venture with Honda Motor Co.  To expand the pool of Indonesians who can afford a car, Astra plans next quarter to introduce models with sticker prices as low as $8,000 through its joint ventures with Toyota and Daihatsu. Currently, the least-expensive passenger cars in Indonesia sell for at least $12,000. "We will be the first offering affordable vehicles," he said. "This year, [auto-sales growth] should at the very least be flat, provided this ne

Goverment to Build New Port in Subang or Indramayu

From The Jakarta Post April 2, 2015 The government has changed its plan to build a new port in Cilamaya and is seeking a better location in Subang or Indramayu, West Java. Vice President Jusuf Kalla said the government needed to build a new port but it would not be in Cilamaya. The Vice President, who visited Cilamaya with several ministers, including Coordinating Maritime Affairs Minister Indroyono Susilo and Transportation Minister Ignasius Jonan on Thursday, said the new port would be built east of Cilamaya, either in Subang or Indramayu. Kalla said the main reason to move the new port’s location to another regency was because waters in the area were already crowded by offshore mining activities and oil tankers transporting crude oil to Jakarta and other cities. The government has allocated Rp 34.5 trillion (US$2.6 billion) to construct a new port, as Tanjung Priok Port is deemed too crowded. For detailed story, visit here The government has changed its plan to build a new p

U.S. Raises Concerns Over 'made in Indonesia' Smartphone Law

From Reuters February 23, 2015 The United States is pressing Indonesia to relax local-content rules it believes will handicap efforts of tech firms such as Apple to expand into one of the world’s last big markets where demand for high-end smartphone has yet to really take off. The regulation, which would come into force on Jan. 1, 2017, requires companies that sell smartphones and tablets in the fast-growing economy of 250 million people to produce about 40 percent of their content locally. Apple’s supplier Foxconn, whose flagship listed unit is Hon Hai Precision Co Ltd, has been dragging its feet as it negotiates with the Indonesian government over a proposed investment that would include manufacturing smartphones. There was no immediate response from Apple and Samsung did to requests to comment on the local-content rule. The American Chamber of Commerce (AmCham) raised concerns about the rule in a Feb. 12 letter to Rudiantara. "We fear that the appr