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Old September 11th, 2012, 10:48 AM   #1
rizalhakim
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#OD | Malindo Air

Malaysia' Nadi, Indonesia's Lion Air in low-cost carrier JV
By BK Sidhu


KUALA LUMPUR: Malaysia's Nadi Sdn Bhd and Indonesia's PT Lion Air are teaming up to set up a low-cost carrier, Malindo Airway to ply the Asean routes, using the KLIA2 as the base.

The joint venture agreement was signed on Tuesday and the new carrier would focus on short-haul flights in the region. The first fight would be in May 2013 from KL to Indonesia.

Nadi is a unit of the National Aerospace & Defense Industries, formerly known as Aerospace Industries Malaysia Sdn Bhd, which is a significant player mainly in the aerospace and defence industries, located in Subang.

Companies under the Nadi Group are Airod, Airod Techno Power, Aerospace Technology Systems Corp & SME Aerospace that primarily serves maintenance, repair & overhaul, engines modifications and upgrades, aerospace parts manufacturing and avionics.

Lion Air is Indonesia's largest private carrier. It flies to more than 36 cities in Indonesia and many other destinations such as, Singapore, Malaysia and Vietnam on a fleet of brand new Boeing 737-900ER.
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Old September 11th, 2012, 10:49 AM   #2
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The JV will see Nadi holding a 51% stake (in Malindo Airways) with the remaining shares belonging to Lion Air...
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Old September 11th, 2012, 12:03 PM   #3
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one more reason to come home..
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Old September 11th, 2012, 12:27 PM   #4
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Malindo Airways?!
I hope they can change the name
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Old September 11th, 2012, 12:50 PM   #5
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Malindo Airways?!
I hope they can change the name
Why ? Malindo is a nice name what. The other competitor to airasia.good competition soon will benefit customers a lot
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Old September 11th, 2012, 01:27 PM   #6
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Originally Posted by Erran View Post
That airline really is so damn ambitious in conquering regional market. Born as small local LCC, and started its operation in 2000 with only a Boeing 737-200.
Twelve years later, it operates as many as 72 planes, and orders other 353 planes. Beat Garuda as the largest airline in Indonesia by market share.

Currently has one subsidiary, Wings Air, established 2003, operates 23 planes, and orders other 43 planes. Starting March next year, it will establish another subsidiary, full service airline named Batik Air, will operate 15 planes.
Look back at AirAsia's story in 2001. A total write-off airline with nothing (in fact with millions of debts) and has grown to what it is today. Last year when they celebrated their 10th year, they have already flown over 120 million and a fleet of >100. Today, look at their branding... they are really a famous airline internationally.


Malaysia's PM today witnessed the birth of a new Low Cost Carrier by LION AIR; will be based at KLIA2 an upcoming regional LCC hub
The Malaysian Insider | UPDATED @ 06:34:00 PM 11-09-2012 By Hafidz Baharom
http://www.themalaysianinsider.com/m...ark-price-war/
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KUALA LUMPUR, Sept 11 — A majority-Malaysian owned budget carrier Malindo Airways launched today will start operations next May and could spark a price war in an increasingly crowded low-cost carrier market.


President of Malaysia’s National Aerospace and Defence Industries (NADI) Ahmad Johan and Lion Air President Rusdi Kirana shake hands during a signing ceremony in Kuala Lumpur September 11, 2012. — Reuters pic

The new airline is a 51:49 joint venture between Malaysia’s National Aerospace and Defence Industries Sdn Bhd (NADI) and Indonesia’s PT Lion Grup, and was launched by Prime Minister Datuk Seri Najib Razak this afternoon.

The airline will start operations on May 1, flying passengers from Indonesia to Kuala Lumpur International Airport (KLIA) and the soon-to-be completed KLIA2. It will also operate out of Kota Kinabalu International Airport.

“This is going to be a landmark collaboration not only between the two parties, but beyond,” Najib said in his speech.

Analysts say that Malindo Airways is eyeing primarily AirAsia’s lucrative domestic market in Malaysia and could undercut AirAsia in an effort to win market share.

The new carrier 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 earlier today, according to a Reuters report.

The move is the latest in the intense rivalry between Lion Air and AirAsia as strong economic growth and rising incomes spur rapid passenger growth among Asian low-cost carriers.

“Malindo is an opportunity to tap a robust market that is right for the entry of a new low-cost carrier,” Najib said when launching the new carrier.

According to Reuters, AirAsia has made inroads into Lion Air’s home market, announcing in July it would make its first major acquisition by buying Indonesia’s Batavia Air.

AirAsia chief executive Tony Fernandes said in May his group was looking to list its Indonesian operations by the first quarter of next year as it moves its regional base to Indonesia.

In contrast with other budget carriers, Malindo Airways will have in-flight entertainment, extra legroom and free light meals, as well as low fares, Reuters quoted Kirana as saying earlier today.

Its hub will be Malaysia’s new budget terminal, KLIA2, which is currently under construction.

“I should be selling at what AirAsia is selling, or I may sell lower,” Kirana told reporters, referring to ticket prices.

He did not say how much Lion Air was investing in the new carrier.

Kirana said there was still a need for “two or three more airlines with specific business models” by 2013.

RHB Research Institute said in a report this evening that AirAsia may also want to nip the competition in the bud by dropping fares to trigger a full-scale price war.

“However, practically, Malindo Airways’ significance as a threat to AirAsia depends very much on how quickly and sizeably it can scale up its operations,” said RHB.

The two firms’ rivalry is also part of a battle between dominant manufacturers Boeing and Europe’s Airbus , which are favoured by Lion and AirAsia respectively, Reuters reported.

Lion Air ordered 230 Boeing short-haul jets worth US$22 billion (RM33 billion) last November to take its total orderbook to more than 400 planes.

Sources told Reuters last week that AirAsia is nearing a deal to buy up to 100 Airbus jets, close on the heels of its record order for 200 last year.

Najib said that the joint venture was part of the government’s Economic Transformation Programme’s (ETP) two entry point projects, “EPP1 — Growing MRO Services” and “EPP2 — Growing Large Pure Play Engineering Services”.

“By the year 2020, these initiatives are expected to contribute RM16.9 billion to Malaysia’s Gross National Income (GNI) and create over 32,000 jobs
,” he said.

The scope of the joint venture agreements signed today includes the formation of a new budget airline, maintenance, repair and overhaul services (MRO), supply chain management and also development of human capital.



When first revealed that Indonesia's LION AIR is setting up a base in Malaysia, nobody believes. Now today is the announcement.


Indonesia's Lion Air to set up low-cost carrier in Malaysia (Update)
By BK Sidhu | The StarBiz | Updated: Tuesday September 11, 2012 MYT 1:26:15 PM
http://biz.thestar.com.my/news/story...&if_height=402
Quote:
KUALA LUMPUR: Malaysia's Nadi Sdn Bhd and Indonesia's PT Lion Air are teaming up to set up a low-cost carrier, Malindo Airway to ply the Asean routes, using the KLIA2 as the base.

The joint venture agreement was signed on Tuesday and the new carrier would focus on short-haul flights in the region. The first flight would be in May 2013 from KL to Indonesia.

Nadi is a unit of the National Aerospace & Defense Industries, formerly known as Aerospace Industries Malaysia Sdn Bhd, which is a significant player mainly in the aerospace and defence industries, located in Subang.

Companies under the Nadi Group are Airod, Airod Techno Power, Aerospace Technology Systems Corp & SME Aerospace that primarily serves maintenance, repair & overhaul, engines modifications and upgrades, aerospace parts manufacturing and avionics.

Lion Air is Indonesia's largest private carrier. It flies to more than 36 cities in Indonesia and many other destinations such as, Singapore, Malaysia and Vietnam on a fleet of brand new Boeing 737-900ER.


Latest ::: Lion Air's new low-cost carrier to rival AirAsia
Business Times | September 11, 2012
http://www.btimes.com.my/Current_New...cle/index_html
Quote:
PT Lion Mentari Airlines will set up a low-cost carrier in Malaysia, challenging AirAsia Bhd, the region’s biggest discounter, in its home market.

Malindo Airways will begin flights in May and may have about 100 planes within a decade, Ahmad Johan, president of National Aerospace & Defense Industries Sdn., told reporters in Kuala Lumpur today. National Aerospace will own 51 percent of the new airline, with Indonesia-based Lion Air holding the rest.

The carrier pits Boeing Co.’s record customer against the biggest buyer of Airbus SAS narrow-body planes as Lion Air and AirAsia compete for budget travelers in Asia. The region’s total air-travel may grow 6.4 percent a year through 2031 because of economic growth, according to Boeing.

“We are looking at selling tickets at AirAsia’s pricing or may be lower,” Lion Air President Director Rusdi Kirana said today. Malindo Air plans to fly to countries including Thailand, China, India, Japan and Australia, besides offering services within Indonesia and Malaysia, he said.

Lion Air signed a record order for 230 Boeing 737s in February, which was worth $22.4 billion at list prices. The deal, which also included 150 options, was Boeing’s biggest in terms of dollar value and plane numbers. The carrier flies to more than 36 destinations within Indonesia and overseas, according to its website.

100 Planes

The airline has forecast passenger growth rates of 15 percent a year as it adds more planes. Its fleet may expand to 470 planes by 2025, Kirana said in November. The carrier has 100 planes now. Malindo Air will draw its fleet from planes Lion Air Group has ordered, including the 787s for possible Europe flights, Kirana said today.

AirAsia has grown into Asia’s biggest discount airline since begin take over by Tony Fernandes and partners in 2001. The carrier, based in Sepang, Malaysia, has subsequently set up ventures in the Philippines, Japan, Thailand and Indonesia.

The airline last year ordered 200 Airbus A320neo aircraft valued at $18 billion in the biggest order for the French planemaker. It may sign a deal for as many as 100 more A320s at the Berlin Air Show, which starts today, Chief Executive Officer Aireen Omar said last month.

Jetstar, the budget arm of Qantas Airways Ltd., is also building up a network of low-cost carriers across Asia. The airline already has ventures in Singapore, Vietnam and Japan, and it’s setting up another in Hong Kong.

Batik Air, Lion Air’s long-haul carrier, will begin operations in March with six Boeing 737s and five 787s, the company said today. - Bloomberg
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Old September 11th, 2012, 02:59 PM   #7
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Originally Posted by maafcakap View Post
Why ? Malindo is a nice name what. The other competitor to airasia.good competition soon will benefit customers a lot
Malindo is okey for me...sense of togetherness....
good news for passengers..... since airasia is now have competitor
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Old September 11th, 2012, 05:01 PM   #8
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Indonesia-Malaysia ties get a major boost today with Indonesian airliner becoming the first foreign airline to operate out of Malaysia

MALINDO AIRWAYS - stands for Malaysia-Indonesia

Malindo Airways will become the first Low-Cost, No Frills airline to offer In-Flight Entertainment and Telephony Services to its customers.



Besides ASEAN, Malindo Airways plans to fly to China, Australia, S.Korea, Taiwan and Japan from its new base in Kuala Lumpur International Airport 2 (KLIA2).

Malaysia and Indonesia, having AirAsia and Lion Air combining over 600 airplanes in the future, will also cooperate in MRO - maintenance, repair and overhaul as well as pilot training.

Meanwhile, this news awaken several existing players in Malaysia:


Malaysia Airlines' unit Firefly may revive jet ops next year; to challenge AirAsia
By Marina Emmanuel | Business Times | September 11, 2012
Quote:
GEORGE TOWN: Firefly, a subsidiary of Malaysian Airline System Bhd (MAS), is believed to be returning to its jet operations as early as next year.

It had to abandon its money-making routes to Sabah and Sarawak following the nowaborted MAS-AirAsia strategic collaboration exercise.

Business Times has learnt that Firefly is considering Canadian aircraft maker Bombardier Aerospace as a potential aircraft supplier to diversify from its current fleet of French-Italian-made turbo-propeller planes ATR.

“It is not known if Firefly will reinstate the East Malaysia routes, but other routes being considered when the community airline expands into jets are Myanmar and Vietnam,” aviation sources said.

Read More >>> http://www.btimes.com.my/Current_New...cle/index_html


Tony Fernandes: Malindo no threat to AirAsia
By K Pragalath | September 11, 2012
http://www.freemalaysiatoday.com/cat...at-to-airasia/
Quote:
AirAsia group CEO Tony Fernandes feels that new low-cost carrier will pose a threat to Malaysia Airlines (MAS).

PETALING JAYA: AirAsia group CEO Tony Fernandes dismissed the notion that a new low-cost airline, Malindo Airways, that will start operation in Malaysia next year will be a potential threat to AirAsia Bhd.

Malindo Airways is a joint venture between National Aerospace and Defence Industries Sdn Bhd (Nadi) and Indonesia’s PT Lion Grup. It will operate from KLIA 2 in Sepang.

Fernandes said that Malindo launched by Prime Minister Najib Tun Razak today would pose a threat to Malaysia Airlines instead.

I think Malindo will be more of problem to MAS than AirAsia,” he said via Twitter.

Fernandes is least concerned about the impact of Malindo Airways on AirAsia since the latter is a regional brand name.

We have a very strong position in Malaysia and are really a regional company. We are no more a Malaysian brand but an Asian brand,” he said.

While he welcomed the latest player in the Malaysian aviation industry, he said the AirAsia group profits would grow since the company has already expanded its operation in Asia.
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Old September 11th, 2012, 05:09 PM   #9
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MALaysia-INDOnesia ...so Malindo
good news for budget flyers....but why 727??
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Old September 11th, 2012, 05:10 PM   #10
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Rumors: Emirates or Singapore Airlines-related studying possibility of setting up a new airline in KL?
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Old September 11th, 2012, 05:26 PM   #11
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Any source for that rumor?
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Old September 11th, 2012, 05:35 PM   #12
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Originally Posted by patchay View Post
Rumors: Emirates or Singapore Airlines-related studying possibility of setting up a new airline in KL?
Woi.everyone want to make kl as their home...btw this is a good news
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Old September 11th, 2012, 05:37 PM   #13
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Good news for KLIA bad news for MH and AK...........
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Old September 11th, 2012, 05:56 PM   #14
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Originally Posted by patchay View Post
Rumors: Emirates or Singapore Airlines-related studying possibility of setting up a new airline in KL?
Heard about Emirates' plan to set a base and a new airline at KLIA2 many months ago. But this Singapore Airlines rumours kinda intrigued me, last time Tiger did an attempt to set up a base here with PNB but failed, probably round 2 for Tiger.
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Old September 11th, 2012, 05:57 PM   #15
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Great!! Any pic of the livery?
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Old September 11th, 2012, 07:33 PM   #16
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Good news for KLIA bad news for MH and AK...........
Bad news for MH, good news for Malaysian, another nail in the coffin for MH, could save our taxes paid and savings in EPF from being used bail out this national aviation nuthouse.
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Old September 11th, 2012, 07:40 PM   #17
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By 2015, we will see Malindo operating B787 Dreamliners (Lion's Batik Air will go long-haul in 2013, and will be quickly adapted by Malindo)

IN May 2013, Malindo will start with 12 Boeing 737-900ER. (Lion has 64 in service and 131 of B737-900ER on order. Besides 29 units of B737-900ER the airline add-on, Lion also ordered 201 units of B737 MAX 9 with 150 in option)


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Lion Air, Malaysian partner launch Malindo Airways

Indonesian low-cost carrier Lion Air will start a hybrid airline in Malaysia in a joint venture with the country's National Aerospace and Defence Industries (NADI).
The new carrier, named Malindo Airways, will start operations in May 2013 with a fleet of 12 Boeing 737-900ER aircraft.
It will provide a "hybrid product" with its aircraft in a two class configuration - 12 in business class and 168 in economy. The aircraft will also be equipped with inflight entertainment systems and inflight connectivity, says Lion president director Rusdi Kirana at a press event in Kuala Lumpur, ahead of the signing ceremony.
Under the joint venture agreement, NADI will hold 51% in the new carrier and Lion 49%. The airline has named Kirana's personal assistant Chandran Ramamuthy as its chief.
Malindo will be based at Kuala Lumpur International Airport terminal two and focus on routes between Malaysia and Lion's hub in Indonesia before operating to other cities such as Bangkok, Manila, Hanoi and Guangzhou. It will also operate on domestic routes.
The carrier intends to add 12 aircraft to its fleet annually, including the 737Max and Boeing 787s. These aircraft will come from Lion Air's current order book, says Kirana.
The five 787s Lion has on order - originally set for its premium carrier Batik Air - will instead go to Malindo in 2015. Lion is now in talks with Boeing to order an additional 10 787s, says Kirana.
To compete as a newcomer, the new airline will offer ticket prices lower or at least on par with that of Malaysia low-cost carrier AirAsia, says Kirana. He claims that Malindo will have a low cost base owing to the involvement of NADI.

SOURCE:http://www.flightglobal.com
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Last edited by patchay; September 11th, 2012 at 07:49 PM.
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Old September 11th, 2012, 08:12 PM   #18
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last I check he said that air asia is a malaysian brand (remember that regional office issue?) and now...he said that air asia is no longer malaysian brand..wth is this..lol...
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Old September 12th, 2012, 02:26 AM   #19
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Happy to have another option for me to fly!! low fare with inflight entertainment, I will opt for it
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It is too NAIVE to believe all the Mainstream Media reports!
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Old September 12th, 2012, 04:49 AM   #20
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Flying 727s and run by an inexperienced GLC? Scary! Do you guys know how old 727s are???
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