Lion Guns for Airport Rail Contract
The company behind low-cost carrier Lion Air plans to invest Rp 20 trillion ($2.1 billion) to build an express railway line to Soekarno-Hatta International Airport, improving transportation links between Jakarta and the Tanggerang aviation hub.
“If the government allows Lion Air Group in as investors, we would be very happy,” Rusdi Kirana, Lion Mentari Airlines’s president director, was quoted as saying by Investor Daily.
The national government had previously announced plans to build a 30 kilometer railway line linking the airport with Manggarai station in South Jakarta. The link has been extended by 15 kilometers to Halim Perdanakusuma Airport in East Jakarta. The government is also discussing plans to convert Halim airport into the main terminal for low-cost airlines.
“We are ready in terms of financing,” Rusdi said, adding that overseas banks would back Lion in the project. In 2011, the Export-Import Bank of the United States helped Lion purchase 230 Boeing 737s for a listing price of $21.7 billion.
The Transportation Ministry said it received an expression of interest from the airline two months ago, and is now looking for other investors to bid.
“Lion has an interest in servicing its customers … but this is also a huge project,” said Tundjung Inderawan, director general for rail transportation at the ministry.
Sarana Multi Infrastruktur, a government infrastructure financing arm, is conducting a feasibility study for the railway project. Should all plans go ahead, the express railway project will be ready for tender by early next year.
The express train project is one of two seeking to link Soekarno-Hatta with downtown Jakarta. Another proposed line will detour through Tangerang.
That project is backed by Railink, a joint venture of state-controlled airport operator Angkasa Pura II and train operator Kereta Api Indonesia. It is expected to be finished in 2015, behind its initial target of August 2014.
Established in 2000, Lion is now the largest privately held airline in Indonesia and is expanding its business from the airline industry to property.
Lion is set to open a 170-room hotel in Manado, North Sulawesi, this year.
On Thursday, Lion launched Batik Air, which will provide full service to passengers, including food and in-flight entertainment. Lion is seeking to fly Batik Air services to Australia.
Lion in March launched Malindo Airlines, which is in partnership with Malaysia’s National Aerospace and Defence Industries (NADI) to service Malaysia.
Lion signed a deal worth $24 billion — recorded as the most valuable commercial order in history — with France’s Airbus on March 18, ordering 234 jets to be delivered from 2014 to 2026.
Jakarta globe.. 29/04/13