Following in the footsteps of Singapore based Tiger Airways, Indonesian carrier Lion Air has flagged that it will launch operations in Australia and Thailand by 2014.
The Anatara news agency in Indoensia this week reported that Lion had entered into a cooperation agreement with an unnamed Australian company, which would hold 49 percent of the joint venture.
Lion Air president director, Rusdi Kirana, told Antara News that it would base six aircraft in Australia and four in Thailand.
According to Kirana, the carrier was drawn towards expanding into Australia and Thailand because it was relatively easy for foreign investors to obtain permits in these markets.
Centre for Asia Pacific Aviation spokesman, Derek Sadubin said, “The move would provide a further influx in capacity to already highly competitive domestic markets in Australia and Thailand.
“The traveling public would be the main winners from further downward pressure on fares if Lion Air is successful in launching operations in both countries.”
Last year, Lion Air stated it was interested in investing in Vietnam, Bangladesh, Malaysia and the Philippines. T he airline envisaged investing US$50-100 million in each venture, to be funded from “internal and external sources”.
However, according to Kirana, the Australian firm came with immediate offer that it “could not resist”.
Lion Air has 122 B737-900s on order.
A Report by The Mole
