AirAsia boss Tony Fernandes has vowed to give Indonesian rival Lion Air "a real run for their money" after it announced plans for a new low-cost carrier.
Indonesia’s Lion Mentari Airlines and a partner, Malaysia’s National Aerospace and Defence Industries, said their Malindo Airways would launch flights around the region from Kuala Lumpur in May, a direct assault on AirAsia’s home turf.
KL-based AirAsia recently opened a regional headquarters in Jakarta and purchased Indonesia’s Batavia Air for USD80 million.
"We are thrilled that they are coming here as this means taking away capacity from Indonesia. We can give them a real run for their money in Indonesia," Fernandes told Malaysia’s The Edge Financial Daily.
Malindo will launch with a fleet of 12 Boeing 737s flying to regional destinations, including Australia, but hopes to expand to 100 planes in a decade and fly to Europe by 2015.
by Ian Jarrett
