Lion Air Australia

Lion Air Australia is a planned Australian domestic and international airline.

Ownership and plans

Ownership of the airline will be split 51% - 49% between Brisbane-based SkyAirWorld and Jakarta-based Lion Mentari Airlines (Lion Air). As a result of the partnership Lion Air Australia will have the same air traffic rights to operate as any other Australian-owned airline. SkyAirWorld also will assist with application for regulatory approvals in Australia. Even though it will be majority owned by SkyAirWorld, Lion Air president Rusdi Kiranait was reported as saying that his company would be the operator and control the business [ [http://www.news.com.au/travel/story/0,26058,23032530-5014090,00.html Hawko's cut-price airline for Oz - NEWS.com.au, Australia] ] .

Initially it will operate with a fleet of six Boeing 737-900ERs, flying domestic routes as well as to Indonesia and other Southeast Asian destinations. The airline anticipates its maiden flight by the end of 2008, and will make the airline the fourth low-cost domestic airline in the Australian market. It will differ somewhat from other Australian budget airlines, offering business, premium economy and economy seats.

In a statement on 10 January 2008 announcing the creation of the Lion Air Australia joint venture, both partners noted that routes, fares and frequencies were still being developed [http://www.news.com.au/heraldsun/story/0,21985,23034785-664,00.html Lion Air will go Sky high] retrieved 2008-01-12] .

Safety

Some Australian newspapers reports have been critical of Lion Air's safety record and speculated that Lion Air Australia could have a challenge in overcoming Australian consumers' concerns at the poor safety reputation of Indonesian carriers. Lion Air, which along with all of Indonesia's airlines are still on the European Union airline blacklist, having lost two aircraft in five years [http://www.theage.com.au/news/news/another-budget-carrier-set-to-roar-in/2008/01/10/1199988545472.html Budget Indonesian carrier set to roar] retrieved 2008-01-12] . The blacklisting means that there are bans in place on international flights to both the United States and European Union. Some media report that Lion Air's alliance with Australia's SkyAirWorld is only a move to bypass the bans.

References

Sources

* [http://www.theaustralian.news.com.au/story/0,25197,23039626-643,00.html Jetstar vows to fend off Lion Air threat - The Australian, Australia]
* [http://www.forbes.com/markets/feeds/afx/2008/01/10/afx4518674.html Indonesia's Lion Mentari Airlines may enter Australian domestic ... - Forbes, NY]
* [http://www.bangkokpost.com/Business/11Jan2008_biz39.php Lion Air faces tough questions in Thai bid - Bangkok Post, Thailand]
* [http://www.theaustralian.news.com.au/story/0,25197,23034806-643,00.html Indonesian 737s fly in for air deal - The Australian, Australia]