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Indonesian low cost carrier Lion Air moves into the premium business

Indonesia largest air carrier Lion Air recently unveiled plans to add a premium company from 2013. The future carrier called Batik Air just confirmed last week an order for five Boeing 787 Dreamliner…

JAKARTA- Boeing just indicated that Indonesian low cost carrier Lion Air made a commitment to order five 787-8s. In February, the airline already reconfirmed a commitment made in November 2011 for 201 Boeing 737 MAXs and 29 737-900ERs , a deal estimated to cost US$22.4 billion. It is the largest contract ever signed for Boeing’s aircraft. Lion air was the launching carrier of the Boeing B737-900.

New affiliate Batik Air will launch its first services in 2013, first using Boeing 737-900ERs on domestic and regional routes while B787 Dreamliner are due for delivery in 2015. Lion Air’s shifted strategy signalled the interest of the low cost carrier to challenge traditional carriers and to venture outside the domestic and neighbouring destinations –Lion air flies for now essentially to Malaysia and Singapore). Batik Air could be based in Manado which offers the advantage to be closer to China, Korea and Japan and would consequently help to save costs on fuel. According to Rusdi, Lion Air CEO, Manado has all the potential to become an international gateway in East Indonesia thanks to its proximity to the large consumers’ markets from Northeast Asia. Low Cost carrier Cebu Pacific in the Philippines revealed also in February 2012 plans to offer long-haul services as it also eyes opportunities from ASEAN economic integration in 2015. According to President and CEO Lance Gokongwei, long haul flights would start in the third quarter of 2013. They are more than 11 million Filipinos living and working in the Middle East, Australia, Europe and USA. Europe is for example only linked by a daily flight of KLM to Manila.

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Luc Citrinot a French national is a freelance journalist and consultant in tourism and air transport with over 20 years experience. Based in Paris and Bangkok, he works for various travel and air transport trade publications in Europe and Asia.

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