Lion Air to launch Malaysia-based budget airline

Discussion in 'Other Airlines | Asia/Australia' started by sobore, Sep 11, 2012.  |  Print Topic

  1. sobore
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    sobore Gold Member

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    Indonesia's Lion Air will set up a new low-cost airline based in Malaysia, it said on Tuesday, a challenge to dominant budget carrier AirAsia Bhd as Southeast Asia's growing middle class fuels demand for cheap flights.

    The new carrier, Malindo Airways, will begin flights between Indonesia and Malaysia next May with a fleet of 12 Boeing 727 aircraft which it plans to expand to 100 planes within a decade, Lion Air President Rusdi Kirana told reporters in Kuala Lumpur.

    The move is the latest in a burgeoning rivalry between Lion Air and Malaysia-based AirAsia as strong economic growth and rising incomes spur rapid passenger growth among Asian low-cost carriers, helping to shield Western planemakers from the malaise gripping developed economies.

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