063. Lion Air

Lion Air

In the bustling skies of Southeast Asia, Lion Air has risen to become one of the region’s most influential carriers. As Indonesia’s largest privately-run airline and the second largest low-cost carrier in Southeast Asia, Lion Air’s journey from humble beginnings to aviation powerhouse represents one of the industry’s most remarkable growth stories.

History: From Two Aircraft to Regional Giant

Lion Air was established in October 1999 by brothers Rusdi and Kusnan Kirana, with operations commencing on June 30, 2000. The airline began scheduled passenger services from Jakarta to Denpasar and Pontianak using a leased Boeing 737-200, making it the first low-cost airline in Indonesia. Starting with just two aircraft, the fledgling carrier was poised to fill a gap in the Indonesian market for affordable air travel.

The airline’s growth accelerated dramatically following the collapse of several competitors, allowing Lion Air to rapidly expand its fleet and route network. The fleet was quickly expanded with the wet-lease of five Yakovlev Yak-42Ds, two McDonnell Douglas MD-82s and two sub-leased Airbus A310-300s. This early period of fleet diversification was later followed by a more streamlined approach focusing primarily on Boeing 737 variants.

In 2003, recognizing the opportunity to serve smaller regional markets, Lion Air established a subsidiary airline called Wings Air to operate flights on lower-density routes. This strategic move allowed the Lion Air Group to extend its reach to more remote destinations that couldn’t support larger aircraft operations.

Over the subsequent years, Lion Air continued its aggressive expansion, capturing a growing share of Indonesia’s rapidly developing aviation market. The airline made headlines with record-breaking aircraft orders, including a $21.7 billion order for 230 Boeing 737 aircraft in 2011 and a $24 billion order for 234 Airbus A320 jets.

Today, the Lion Air Group has evolved into Indonesia’s largest airline group, encompassing several carriers including Lion Air, Wings Air, Batik Air, and Super Air Jet. The group has also established international affiliates such as Thai Lion Air in Thailand and Batik Air Malaysia (formerly Malindo Air) in Malaysia.

Fleet Information and Statistics

Lion Air’s fleet growth has been nothing short of remarkable. In 2000 following its establishment, Lion Air proudly rolled out a fleet of just two Boeing 737-200 aircraft. Today, the airline operates 118 aircraft — including the Boeing 737-900ER, Boeing 737-800, Boeing 737 MAX 8 and Airbus A330-300 — to meet passenger demand.

The current fleet composition includes:

  • Boeing 737-800 and 737-900ER aircraft for short and medium-haul routes
  • Boeing 737 MAX 8 aircraft (though operations were affected by the global MAX grounding)
  • Airbus A330-300 aircraft for long-haul flights to destinations such as Jeddah and Tokyo

Lion Air’s fleet is relatively young, with an average age of just 6.73 years. This focus on maintaining a modern fleet helps the airline achieve operational efficiencies, including lower maintenance costs and better fuel economy.

The airline’s massive aircraft orders demonstrate its ambitious growth plans. In 2011, Lion Air placed an order for 230 Boeing 737 aircraft worth $21.7 billion, which at the time was the largest aircraft order ever received by Boeing. This was followed in 2013 by an order for 234 Airbus A320 jets worth $24 billion. These orders positioned Lion Air as one of the most significant customers for both major aircraft manufacturers.

However, following the tragic crash of Lion Air Flight 610 in October 2018 involving a Boeing 737 MAX 8, the airline has reportedly reconsidered parts of its order book. The group has slowed its pace of aircraft deliveries in recent years, taking a more measured approach to fleet expansion.

Network and Hubs

Lion Air operates an extensive network of domestic and international routes, connecting destinations throughout Indonesia and beyond. The airline operates domestic as well as international routes, which connects different destinations of Indonesia to Singapore, the Philippines, Malaysia, Thailand, Australia, India, Japan and Saudi Arabia, as well as charter routes to mainland China, Hong Kong, South Korea and Macau, with more than 630 flights per day.

The airline’s primary hub is at Soekarno-Hatta International Airport in Jakarta, one of Southeast Asia’s busiest airports. Additional hubs include:

  • Juanda International Airport in Surabaya
  • Hang Nadim International Airport in Batam
  • Sultan Hasanuddin Airport in Makassar

From these strategic hubs, Lion Air connects Indonesia’s sprawling archipelago of more than 17,000 islands, providing essential transportation links for both business travelers and tourists. The airline’s affordable fares have been instrumental in making air travel accessible to millions of Indonesians who previously relied on slower ferry and bus services.

Lion Air flies to 183 routes, divided into domestic routes that spread to all corners of Indonesia from Sabang to Merauke, and international routes to countries such as Singapore, Malaysia, Saudi Arabia and China. This extensive network has made Lion Air a vital component of Indonesia’s transportation infrastructure.

Quick Facts

  • Founded: October 1999
  • First Flight: June 30, 2000
  • Founders: Rusdi and Kusnan Kirana
  • Headquarters: Lion Air Tower, Jl. Gajah Mada No. 7, Central Jakarta, Indonesia
  • Business Model: Low-cost carrier (LCC)
  • Company Motto: “We Make People Fly”
  • Number of Daily Flights: More than 630
  • Fleet Size: Approximately 118 aircraft
  • Average Fleet Age: 6.73 years
  • Parent Company: Lion Air Group
  • Sister Airlines: Wings Air, Batik Air, Super Air Jet, Thai Lion Air, Batik Air Malaysia
  • Major Hubs: Jakarta, Surabaya, Batam, Makassar
  • Routes: 183 (domestic and international)
  • IATA Code: JT
  • ICAO Code: LNI

Operational Performance

Lion Air has experienced rapid growth and success, but not without challenges. The airline was previously criticized for operational issues, particularly regarding on-time performance and safety concerns. However, the carrier has taken significant steps to address these issues in recent years.

Safety has been a particular focus following past incidents. On 16 June 2016, the European Union lifted the ban it had placed on Lion Air from flying into European airspace. In June 2018 it attained a positive safety rating following an ICAO audit. These developments reflect Lion Air’s commitment to improving its safety standards and operational procedures.

The most significant incident in Lion Air’s history occurred on October 29, 2018, when Lion Air Flight 610, a Boeing 737 MAX 8, crashed into the Java Sea shortly after takeoff from Jakarta, claiming the lives of all 189 people on board. This tragedy was later linked to issues with the aircraft’s MCAS (Maneuvering Characteristics Augmentation System), and along with the subsequent Ethiopian Airlines Flight 302 crash, led to the worldwide grounding of the Boeing 737 MAX fleet.

Despite these challenges, Lion Air has maintained its position as Indonesia’s largest private carrier and continues to play a vital role in the country’s air transportation system. The airline’s extensive domestic network has been particularly crucial in connecting Indonesia’s vast archipelago.

Contact Information

For passengers and partners needing to reach Lion Air, multiple contact channels are available:

Customer Care:

  • Phone: (+6221) 633 8345

Reservations:

  • General Reservations: (+6280) 4177 8899 or (+6221) 6379 8000
  • Malaysia Reservations: (+60) 03-7841 5333
  • Singapore Reservations: (+65) 6339 1922

Head Office:

  • Lion Air Tower
  • Jl. Gajah Mada No. 7
  • Central Jakarta, Indonesia

Website: www.lionair.co.id

Frequent Flyer Program: Lion Air Passport

Social Media:

  • Lion Air maintains active accounts on major social media platforms including Facebook, Twitter, and Instagram

Future Prospects

Looking ahead, Lion Air faces both opportunities and challenges as it navigates the future of air travel in Southeast Asia. The region’s aviation market continues to experience robust growth, driven by a rising middle class, increased tourism, and improving economic conditions across ASEAN countries.

For Lion Air, future expansion is likely to focus on several key areas:

Measured Fleet Growth: While past years saw aggressive aircraft acquisitions, the Lion Air Group is continuing to expand its fleet, with plans to add around 80 new aircraft in 2023 according to statements from a senior executive in late 2022. However, this growth appears more strategic and measured than in previous years.

New International Routes: The airline group has expressed plans to expand operations in South Asia, targeting countries such as India, Pakistan, Bangladesh, and Sri Lanka. This push into new markets could help diversify the carrier’s revenue streams and reduce dependence on the competitive Indonesian domestic market.

Fleet Modernization: Lion Air continues to focus on operating modern, fuel-efficient aircraft. The introduction of newer aircraft types like the Airbus A320neo and potential future deliveries of the Boeing 737 MAX (following safety recertification) could help improve operational efficiency and reduce environmental impact.

Enhanced Digital Services: Like many airlines worldwide, Lion Air is likely to invest further in digital technologies and services to improve customer experience, streamline operations, and create new revenue opportunities. The airline’s website and mobile app already offer features such as online booking, check-in, and flight status updates.

Sustainability Initiatives: As environmental concerns become increasingly important in the aviation industry, Lion Air may face pressure to adopt more sustainable practices. The airline’s investment in newer, more fuel-efficient aircraft is a step in this direction.

Despite these opportunities, Lion Air also faces significant challenges, including intense competition from other low-cost carriers in the region such as AirAsia and VietJet Air, as well as Indonesia’s national carrier Garuda Indonesia and its low-cost subsidiary Citilink. Rising fuel costs, currency fluctuations, and regulatory changes could also impact the airline’s profitability.

Nevertheless, Lion Air’s established market position, extensive network, and proven ability to adapt to changing conditions suggest that the airline will remain a dominant force in Indonesian and Southeast Asian aviation for years to come.

Future

From modest beginnings with just two aircraft in 2000 to becoming Indonesia’s largest private airline operating over 100 aircraft today, Lion Air’s growth story reflects the tremendous expansion of air travel in Southeast Asia. The airline has played a pivotal role in making air travel accessible to millions of Indonesians and connecting the country’s far-flung islands.

While Lion Air has faced its share of challenges, including operational issues and safety concerns, the airline has demonstrated resilience and a commitment to improvement. The steps taken to enhance safety standards, modernize its fleet, and expand its network position Lion Air well for continued success in the competitive aviation landscape of Southeast Asia.

As air travel continues to grow across the region, Lion Air’s influence is likely to expand further, connecting more destinations and carrying more passengers across Indonesia and beyond. With its extensive domestic network, growing international presence, and fleet of modern aircraft, Lion Air remains a key player in the ongoing development of aviation in Southeast Asia.

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