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LION AIR is set launch....

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Old 24th May 2013, 06:13
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LION AIR is set launch....

Lion Air to launch Thai subsidiary


The plan by Lion Air, Indonesia's largest low-cost carrier, to join Thailand's hotly contested airline market is coming to fruition, six years after it was mooted.

The Jakarta-based airline is setting up a subsidiary airline, Thai Lion Air, and has already started recruiting pilots, cabin attendants and ground staff.

Thai Lion Air intends to start its operation strongly with the deployment of up to six single-aisle twin-jet Boeing 737-800s and by using Bangkok's Don Mueang airport as its base, according to people with knowledge of the matter.

Woradej Harnprasert, director-general of the Civil Aviation Department, yesterday confirmed Lion Air is launching a Thai subsidiary, although the department has not yet received an application for air operator's certificate.

The creation of Thai Lion Air comes in the form of joint venture with Thai entities, which are required by law to have a minimum 51% holding.

However, the identities of the entities remain a mystery.

Reports suggest Phuket Airlines, which used to operate scheduled domestic and international flights nearly a decade ago, is an investor.

But Mr Woradej discounted that possibility, saying Phuket Airlines, founded by businessman and former senator Vikrom Aisiri, has been preoccupied with charter services.

Lion Air's entry will intensify Thailand's s highly contested market. It will compete with major players Thai AirAsia and Nok Air and, to a lesser extent, with Orient Thai, which has significantly downsized its scheduled operations over the past two years.

"Lion Air's entry is good for more healthy competition, giving passengers choice," said Mr Woradej, noting that Thai skies are open to airlines as long as they meet regulations.

Thai Lion Air aims to operate flights within Thailand and to neighbouring countries, sources said.

Lion Air has sought to set up a sister carrier in Thailand since 2007. It considered a tie-up with One-Two-Go, the now-defunct budget airline of Orient Thai, or a partnership with a holder of an airline licence in Thailand.

Chief executive Rusdi Kirana in March told reporters the airline was still exploring earlier plans to set up subsidiaries in Australia and Thailand.

The airline reportedly reached a recent accord to acquire 49% of an unnamed Australian company and base six aircraft in that country.

Executives have also said the airline is considering partnerships in Myanmar, Vietnam, Bangladesh, Malaysia and the Philippines to grow its operation, essentially to absorb its huge aircraft capacity.

In February 2012, Lion Air ordered 201 Boeing 737 MAXs and 29 next-generation 737-900ERs worth US$22.4 billion, the biggest single order for the US aircraft maker in its history, measured by the number of planes and the value of the order.

In March, it placed an order for 234 Airbus A320 aircraft worth $24 billion.

Executives have said the company wants to have 1,000 planes in 10 years.

As of last December, Lion Air operated nearly 100 aircraft, mostly Boeing 737-800 and 900 models.

Lion Air recently launched domestic carrier Malindo Air as a joint venture in which it owns a 49% stake and is planning to set up full service carrier Batik Air in Indonesia later this year.

The airline, founded in 2000 with the slogan "We make people fly", has a poor safety record. Its fourth accident in 16 months occurred in April when a Boeing 737-800 crashed into the sea at Bali airport.

Mr Woradej said Thai Lion Air will be regulated by the department's safety standards.


BANGkok Post...22/05/2013
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Old 24th May 2013, 13:59
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Yeah, I heard they are going to be specially modified B737-800s fitted with pontoons.
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Old 24th May 2013, 22:46
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good one captjns
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Old 29th May 2013, 14:41
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We Also "make people swim"

The airline, founded in 2000 with the slogan "We make people fly", has a poor safety record. Its fourth accident in 16 months occurred in April when a Boeing 737-800 crashed into the sea at Bali airport.
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Old 29th May 2013, 15:14
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At least landing short of the runway is a change from the numerous over-runs and runway excursions they've had in recent times.

Lion Air Accidents and Incidents in recent time.
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Old 29th May 2013, 23:35
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IMHO

Do I unverstand this correctly? Lion is not satisfied with crashing aircraft in Indonesia alone, they want to expand that business model into Thailand? Way to go !

Last edited by heavy.airbourne; 29th May 2013 at 23:36.
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Old 30th May 2013, 02:36
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At least landing short of the runway is a change from the numerous over-runs and runway excursions they've had in recent times.
Simple math... overrun plus landing short divided by 2 = airport landing.

Now the formula does not account for the airport location of arrival.

Do I unverstand this correctly? Lion is not satisfied with crashing aircraft in Indonesia alone, they want to expand that business model into Thailand? Way to go !
Priceless! Just priceless.

Last edited by captjns; 30th May 2013 at 02:38.
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Old 30th May 2013, 07:33
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Seems the skies are going to get a little crowded as Vietjet are going to tie up with Kan Air too and form aother local carrier using A320s
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Old 31st May 2013, 18:58
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@ quazar +captjns

Hilarious!!

@Heavy.airbourne

After the Bali splash, the only way for LionAir to get their reputation on track is for them to start a proper SMS in their Thai startup. Apparently they are making a go at it by recruiting only experienced local F.O.'s for their initial Thai LionAir operation- 500 hours on type or a minimum 1500 hours, with 500 hours on jet engine aircrafts- unlike their recruitment model for Malindo (P2F). Interesting to see the change.

The Thai DCA are wary of any threat of being downgraded from their CAT I status, so hopefully they will layout some stringent guidelines for Thai Lion.
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Old 1st Jun 2013, 00:45
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Apparently they are making a go at it by recruiting only experienced local F.O.'s for their initial Thai LionAir operation- 500 hours on type or a minimum 1500 hours, with 500 hours on jet engine aircrafts-
I cant see any experienced F/Os leaving any of the established carriers for this operation and only Nok have type experience so will be a challenge for them to find suitable local candidates.
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Old 1st Jun 2013, 02:08
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I was reading an article where the head of Lion Air was boasting about their young fleet. I guess having to continually replace crashed airframes is one way to keep the fleet average age down.

Last edited by Big Pistons Forever; 1st Jun 2013 at 02:08.
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Old 1st Jun 2013, 11:14
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@zft

Rumours have it that the pay for both F.O's and Capt. will be higher than Nok Air and competitive with Bkk Airways and Air Asia unlike their indo operations, and that some old Nok (ex-thai airways) captains are willing to take the leap...
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