Lion Air set to use Bangkok as a hub

[webfact]

BUDGET AIRLINE
Lion Air set to use Bangkok as a hub
BAMRUNG AMNATCHAROENRIT
THE NATION
Jakarta

BANGKOK: -- Lion Air, the Jakarta-based low-cost carrier, will use Bangkok as one of its hubs to strengthen its network connectivity.

It hopes to play a bigger role the Thai and regional aviation market, drawing on Indonesia's strength as a popular tourist destination.

It has seven hubs at home - Jakarta, Batam, Surabaya, Bali, Ambon, Makassar and Manado - and one regionally in Kuala Lumpur, where it formed a joint venture with Malaysia's National Aerospace Defence Industries to establish Malindo Air, a budget carrier.

The group also runs Wings Air, a low-cost carrier flying to remote islands. The three carriers serve 76 destinations in Indonesia, far more than any other airline.

Bangkok is deemed a strategic location to link flights from the group's affiliated airlines and also regionally with cities. In the future, it plans to serve Japan and South Korea via its full service airlines. However, it's too early to reveal details.

CEO Rusdi Kirana said the launch of Lion Air in Thailand would help attract more travellers there. Even though it is newcomer there, that's not a big barrier. The market was large enough for every airline to survive, as long as they offer effective services.

It will compete head-on with AirAsia, which has a strong foothold there. It is eager to expand its network across Thailand and in the region through the years.

Last week, it said it would fly from Krabi to Chiang Mai and also to Singapore. Early next year, VietJet from Vietnam will launch its flight there and then no doubt competition will heat up.

In Thailand, Lion Group has set up a joint venture, Thai Lion Mentari Co. It has received an air operator licence from the Transport Ministry and is working to get an operator certificate from the Civil Aviation Department.

Its inaugural flight will be from Bangkok's Don Mueang International Airport to Jakarta next month, with two flights a day. It also plans to add the Bangkok-Kuala Lumpur route with a daily service and a Bangkok-Chiang Mai route with three daily services. Other Thai provinces in its sights include Phuket, Krabi and Udon Thani.

It has two new Boeing 737-900ERs in a 215-seat all-economy-class configuration. Over the next five years, it plans to build up its fleet to 50 aircraft.

Lion Group has placed orders with manufacturers for 708 planes, of which 408 are Boeings and the remainder are Airbus and ATR. In November last year alone, it ordered 201 Boeing 737 MAX and 29 737-900ER, costing US$21.7 billion. Later last year, it placed an order for 15 ATR 72s and 15 more, bringing the total to 30.

The big fleet can ensure smooth and timely expansion, especially when a potential market shows demand for travel. In Thailand, it'll offer a true "low" airfare.

Tassapon Bijleveld, Thai AirAsia's CEO, has shrugged off the entry of another low-cost carrier, saying his airline offers the best airfare deal in the market.

Kirana declined to disclose the airfare for Bangkok-Jakarta, but gave the example of Jakarta-Malando, which also takes about three hours.

That flight costs about $90. But the Bangkok-Jakarta price would be somewhat higher since it's an international flight with additional operating cost of over 20 per cent.

However, its competitive edge is 15 kilograms of luggage for loading for free. No extra fee such as booking at the counter is charged.

To spur travel demand, it will work with travel agencies to design packages to stimulate passengers to travel more in other parts of Thailand, not only serve point-to-point service.

Lion Air was established in 1999 and launched its first flight in 2000.Now it has 98 aircraft in its fleet, operating 580 flights a day to 31 domestic and five international destinations.


-- The Nation 2013-10-21

[ezzra]

Still not comfortable flying Indonesian regional airlines,, safety track records leaves

a lot to yet be desired... but this is me...

[asdecas]

Lion Group has ordered 708 planes? Surely this figure cannot be correct?

[outsider]

Hub hubba...

[LawrenceN]

If they do Chiang Mai - Den Pasar non-stop, I'll be on it. I would even consider a stop at DMK if the schedule is sensible.

[bangon04]

" It has received an air operator licence from the Transport Ministry and is working to get an operator certificate from the Civil Aviation Department."

Have they held the right ceremonies to appease the angry ghosts/spirits, and have they bought enough of the right amulets for good luck? One for every cockpit?

Do they have a stock of black spray paint?

[Samaaw]

Still not comfortable flying Indonesian regional airlines,, safety track records leaves

a lot to yet be desired... but this is me...

Lately some of the Thai based airlines including Thai AIr also seem to have been in the news with issues....

[Roota]

Lion Group has ordered 708 planes? Surely this figure cannot be correct?

It might well be - I know the figure is well north of 500. However many of these are really just options, which are placed at almost no cost at all, so the numbers really don't mean much.

Personally I'll be sticking to Air Asia, thanks.

[kjun12]

Still not comfortable flying Indonesian regional airlines,, safety track records leaves

a lot to yet be desired... but this is me...

ezzra, you make a very good point. They do appear to forgoe maintenance quite often.

[HOOD Robin]

" It has received an air operator licence from the Transport Ministry and is working to get an operator certificate from the Civil Aviation Department."

Have they held the right ceremonies to appease the angry ghosts/spirits, and have they bought enough of the right amulets for good luck? One for every cockpit?

Do they have a stock of black spray paint?

[Konini]

I could be confusing it with another Indonesian airline, but I'm sure I'm right in thinking that Lion has a very bad safety record.

[Stocky]

Lion Air is a big player, it's Indonesia’s largest privately run airline and commands the biggest share of the domestic market. Indonesia is a large country, scattered over many islands, with a huge population. In Indonesia Lion currently operate 86 planes, all 737-900s or 800s. They've completely replaced their fleet and are busily expanding with orders for a further 300 Boeing aircraft and some 235 Airbus A320s. It makes sense for them to be looking overseas.

As someone who works in Indonesia I'm a regular passenger, this is not the same airline I first flew seven years ago, nor are the other Indonesian carriers, they've all upgraded the fleets and worked very hard to improve safety standards. As pointed out Thailand's air safety record isn't that great; remember 1-2-Whoops!

This is good news, anything that increases competition is good for the consumer.

[KED]

I travel often to and within Indonesia - the biggest problem I have is that I use a U.S. credit card and cannot buy tickets online for most carriers. Only Garuda and Indo Air Asia will let the purchase go through. I hope Lion fixes this problem if they want my business. Otherwise, the more competition the better - especially with 15kg of free checked bags.