Mandala Airlines

Tiger-backed Mandala resumes operations with focus on Indonesia’s largest routes

Indonesia’s Mandala Airlines has resumed operations and emerged from bankruptcy as a new affiliate of Asian LCC group Tiger Airways. Mandala’s first flight in 15 months operates today (05-Apr-2012) on one of Indonesia’s largest domestic routes, Jakarta-Medan. But the new Mandala, which only operated domestic services before its Jan-2011 grounding, will focus primarily on international routes starting with Medan-Singapore and Jakarta-Kuala Lumpur.

Mandala last week announced Jakarta-Medan and Jakarta-Kuala Lumpur as its first two routes as a Tiger partner carrier, with flights commencing on 05-Apr-2012 and 04-May-2012, respectively. But Tiger’s booking engine indicates that Mandala will start operating international flights earlier - on 20-Apr-2012 with one daily frequency on the Medan-Singapore route. More routes, primarily international but also some domestic, are expected to be added over the next few months as Mandala rapidly spools up its fleet of Tiger-sourced Airbus A320s.

Tiger places big bet on Indonesia with re-launch of Mandala

Tiger Airways is banking the booming Indonesian market can support another new carrier and absorb over the next 14 months at least 10 A320s from the struggling airline group’s surplus fleet. Singapore-based Tiger has not yet invested a penny into Mandala Airlines but has a lot at stake as the Indonesian carrier plans to resume services in April following a 15-month hiatus, using Tiger’s aircraft and business model. While it only had to pay a token one dollar for its 33% stake in Mandala, Tiger along with Mandala’s other new investors will be providing a loan to cover re-launch costs and will need to continue pumping in capital until the airline becomes profitable, a potentially challenging proposition given current market conditions in Indonesia.

The new Tiger-backed Mandala will compete against three powerful LCCs in the Indonesian market – Lion Air, Indonesia AirAsia and Garuda Indonesia budget unit Citilink. These carriers combined now operate about 100 aircraft and are all expanding at high double-digit rates. Mandala will also have to compete against Garuda’s fast-expanding mainline operation and three second tier Indonesian carriers – Batavia Air, Sriwijaya Air and Merpati Nusantara Airlines – which also currently operate a combined fleet of about 100 aircraft and offer low fares, although they are not generally considered to be LCCs.

Asia's first time flyers the big winners as Paris Air Show PR juggernaut winds down

The major beneficiaries of this week’s frenetic (public relations) activity just outside Paris live half a world away. They are Asia’s emerging travellers – the millions that have never stepped inside an aircraft, but for whom air travel is becoming attainable. That opportunity took a major step forward as Asian carriers – many of whom the world had never heard of a decade or even five years ago – stepped up in front of the world’s media to order narrowbodies for the mass markets they see blossoming at home.

Jakarta Airport ranks No 16 but not on global hub status

Indonesia is a nation with very impressive statistics that still remains somewhat off the beaten path and away from much global notice. Yet it is the world’s most populous Muslim nation and ranks fourth globally in total population. It is the largest nation in Southeast Asia and stretches from west of Malaysia to the north of Australia.

Mandala Airlines suspends service, applies for time to restructure. Indigo Partners 49% owners

All Of Indonesian LCC, Mandala Airlines' flights were suspended effective 13-Jan-2011. Mandala yesterday announced it had requested “suspension of payment obligation to the Commercial Court allowing its management to restructure the business and to restore the airline to profitability”.