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Thai Lion Air Ready to Take on Other LCCs
29th Nov 2013
The Indonesia-based budget carrier has a bold plan in Thailand through its local subsidiary, Thai Lion Air, as soon as it starts operating before the end of this year.
November 12, 2013 (from www.thephuketnews.com): The Thai subsidiary, even before it could launch its inaugural service, has ambitious plans already in its sleeves projecting to have at least 50 aircraft in its fleet within five years of operation.
Along with the fleet expansion, the future airline is also planning to operate a two-pronged approach to compete in the industry - that is operating both as low-cost and full-service airline.
Its main competitor in Thailand is the well-established Thai AirAsia, the local subsidiary of Malaysia-based AirAsia Bhd. which has been operating since 2004.
The Lion Air Group founder and CEO, Rusdi Kirana, has confirmed that the airline has already taken delivery of its first aircraft recently as it prepares to launch its maiden service. Though, it is yet to receive regulatory clearance from the Department of Civil Aviation of Thailand.
Thai Lion Air has an initial fleet of two new aircraft, Boeing 737-900ERs, for the inaugural operation, with a seating capacity of up to 215 passenger in an all-economy class configuration.
The budget carrier is aiming to acquire a dozen aircraft of similar type towards the end of next year to support its route expansion plans.
It is planning to launch its commercial operation with a flight from Bangkok to Jakarta which will become a twice-daily service thereafter. It will also launch a once-daily service from the Thai capital to Kuala Lumpur, giving Thai AirAsia a sampler of a future competition coming its way. Also to be launched is the three times daily service between Bangkok and Chiang Mai.
Also in the pipeline next year is the possible opening of routes from its Bangkok hub to cities in China and India such as Delhi, Mumbai, Guangzhou, Shenzhen and Hong Kong.
Thai Lion Air (TLA) is also aiming to open major domestic routes in Thailand linking Bangkok to Phuket, Krabi, HatYai and Phitsanulok.
According to Mr. Rusdi, the airline won't focus on serving poin-to-point routes for its domestic operations, rather creating feeder routes for travelers from Indonesia who might want to proceed further beyond Bangkok.
He also denied rumors that Thai Lion Air will offer super low fares to crush competitors in the country.
Unlike most other LCCs who mainly sell airfares, TLA will differ itself from the rest by offering mainly packaged tours which may include, among others, hotel accommodation.
He also cited the ASEAN Economic Community's integration in 2015 which will see member-countries open their skies to intra-regional unrestricted travel among their citizens.
Thai Lion Air is a joint venture between Indonesia-based Lion Air Group, who owns 49% of the total shares, and Thai partners.
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