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

POSCO to lift Indonesia investment to $11 billion over next 5 years: Jakarta

From Reuters Oct 19, 2012 South Korean steelmaker POSCO will almost double its investment in Indonesia to $11 billion over the next five years, from $6 billion currently, Chief Economics Minister Hatta Rajasa said on Friday. The world's fourth-biggest steelmaker, already has a multi-billion dollar joint venture with Indonesian state-owned PT Krakatau Steel, the country's biggest steel producer. Earlier this year, the South Korean firm's affiliate POSCO Engineering & Construction, formed a consortium to build two 300-megawatt power plants on Indonesia's Sumatra island, worth around $1 billion. A POSCO spokesman in Seoul said the South Korean firm has yet to make detailed investment commitments in Indonesia, and noted other partners would jointly invest in any projects. Foreign direct investment in Indonesia stayed strong in the second quarter, showing the G20 member remained a magnet in a troubled global economy and that changes in mining ownership r

PLN: Gas Tender Held to Accelerate 35,000 MW Power Plant Project

From The Jakarta Post April 2, 2015 PLN, State electricity company  has said that its plan to hold the prequalification tender for the procurement of liquefied natural gas (LNG) aims to accelerate a 35,000 Megawatt (MW) power plant construction project. PLN’s director for strategic procurement and primary energy, Amin Subekti, said the company would hold a tender not only to ensure smooth power plant construction but also to secure its gas supply. PLN would auction not only the supply of gas but also its transportation and supplying infrastructure as well as its regasification facilities. He said PLN had announced studies on the prequalification process, followed by consultation sessions held at the company’s headquarters in Jakarta on Wednesday. Moreover he explained that in the end, the tender winners would create consortiums in which each of them would be permitted to procure gas domestically or through imports, to accommodate and to store, to transport and regasify the gas in ev