Lion Air

Singapore Airshow 2012: Pacific Royale launch to intensify full service competition in Indonesia

Competition in Indonesia is about to intensify further as Pacific Royale prepares to launch services next month with an initial fleet of two Fokker 50s and two A320s based in Surabaya and Batam. Pacific Royale is targeting Garuda and Indonesia’s other full service carriers with a low-density two-class product on its A320s that includes lightweight fibre optics-based in-flight entertainment (IFE) systems in both cabins. The carrier’s business plan envisions rapid growth including 20 to 25 A320s, which will form the backbone of Pacific Royale’s fleet, within three years.

Pacific Royale will launch with domestic services but regional international services, primarily from Indonesia’s second largest city of Surabaya, are planned as part of a second phase which is slated to begin by mid-2012. Medium to long-haul international services with A330s are also being considered as part of a third phase which could begin as early as late 2012. While Pacific Royale will have several routes from Jakarta, where it has established its headquarters, it will focus primarily on relatively underserved point-to-point markets which bypass the congested capital.

Singapore Airshow 2012: Garuda Indonesia, Citilink and Lion accelerate fleet expansion

Indonesia’s two largest airline groups, Garuda Indonesia and Lion Air, are further accelerating the expansion of their fleets as they look to capitalise on their leading positions in one of the world’s biggest emerging markets.

The two groups – which include Garuda budget carrier Citilink, Lion Air regional subsidiary Wings Air and soon Lion Air’s new full service unit Space Jet – are now committed to at least triple the size of their combined fleets from the current figure of about 180 aircraft.

Other Indonesian carriers, including Indonesia AirAsia, Batavia, Mandala and Sriwijaya, are also expected to rapidly grow their fleets as the total number of commercial aircraft operating in Indonesia could approach 1000 aircraft towards the end of the next decade.

Jetstar's new North Asia focus leaves room for Qantas Singapore expansion to Europe and India

Jetstar is planning to expand its Singapore-based fleet by 50% over the next six months as the low-cost carrier group looks to North Asia for the next phase of its dramatic expansion. As the largest low-cost airline group in the Asia-Pacific region continues to expand at a rate of about 20% per annum, additional capacity will not be directed west towards South Asia, the Middle East or Europe but primarily to North Asia, where Jetstar sees the most opportunities given North Asia’s very low LCC penetration rate. This strategy could signal growth for the Qantas brand in South Asia and Europe as the group looks at potentially announcing next month the launch of a new Singapore-based full-service carrier.

Paris 2011: Sriwijaya’s ageing fleet gets big boost with E190s

Sriwijaya Air is responding to intensifying competition in the Indonesian market by committing to become the first Indonesian customer for E190s. The new type will allow Sriwijaya to differentiate itself from some of its low-cost competitors and expand into some of Indonesia’s many fast-growing secondary routes.