LION AIR passenger numbers in the first quarter rose 10%

Indonesia national airline PT Lion Mentari Airlines or Lion Air successful a growing number of passengers during the first quarter of this year. The number of airline passengers increased by 10% over the same quarter last year.

General Director of Lion Air, Edward Sirait explain the increase in passenger numbers due to the revitalization of the fleet is carried out by the company. In addition, Lion Air also made additional flight frequencies on domestic routes.

In the first quarter of this year, Lion Air recorded an increase of about 800,000 passengers, up 10% over the same quarter last year amounted to 7.2 million passengers.

"Of the eight million passengers, mostly from domestic flights is 98% or 7,840,000 passengers, while the rest coming from international flight around 160,000 passengers," said Edward. 

Edward said that most domestic routes is Jakarta-Medan route. This route has 20 times flights per day. The load factor for the Jakarta-Medan route stable at 82.5%. While on international routes, the airline is still concentrating on the route from Jakarta to Singapore, Jakarta to Jeddah and Jakarta to Kuala Lumpur.

Although there is the addition of 10% the number of passengers in the first quarter of 2012, but he was pessimistic until the end of this year could raise the overall airline passenger numbers up 10%. Edward argued, the month of July, after the September school holidays and after the Eid holidays are the low season.

Last year, Lion Air transport 24.97 million domestic passengers in 2011, or approximately 41.59% of total domestic passengers nationwide. Edward says, the flight routes which opened earlier this year was a direct route from Jakarta to Manado since last February 2012. While the end of this month Lion Air will open two direct routes namely Surabaya to Ambon and Surabaya to Palu without transit in Balikpapan.

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Lion Air plans to go public delayed

Lion Air to delay plans to go public this year worth more than U.S. $ 1 billion. Rusdi Kirana, chief executive officer (CEO), Lion Air said, the delay made due to the deteriorating condition of the stock market.

As info before, Lion Air has ambitious expansion plans to increase its flight business. Moreover, the Indonesia's airline company already has had a record of buying 200 Boeing aircraft.

"We can not do it (go public) this year because of the situation with the financial crisis is not so good," said CEO Rusdi Kirana. Rusdi said Lion Air currently has a market share of 51% of domestic flights and plans to go public when their market share reached 60%, something which was expected to occur two years into the future.

Rusdi Kirana ever mentioned, he does not need the IPO funds to pay for orders the plane. Some time ago, the airline is the world's attention, because the largest aircraft order valued at U.S. $ 21.7 billion.

Airbus blamed the United States (U.S.) to apply political pressure to secure an agreement to buy the aircraft. More details, Lion Air to buy 230 planes of shorter route, which purchase was signed in the presence of President Barack Obama.

Regarding the case of drug use by Lion Air, Rudi denied. "The rumors say, the pilots I worked too hard, so they use drink and drugs," said Rusdi. He also explained, "People make up stories to discredit us," he said. In addition to developing its business, Rusdi claims to have set up 1,000 homes for his airline's staff.

Rusdi Kirasna also criticized Europe that still apply black list to Lion Air. While Garuda Indonesia and five other airlines to get relief. "I do not care if the EU wants to blacklist Lion Air, Indonesia is a our market, and I want justice," said Rusdi.

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LION AIR to buy 230 Boeing aircraft worth US$ 21.7 billion

Lion Air has signed a purchase of 230 new types of aircraft made ​​by Boeing Co.. Purchase of 737 aircraft jetliner amounted to U.S. $ 21.7 billion is the biggest deal for Boeing.

Purchase agreement will be signed on Friday (18 / 1). U.S. President Barack Obama is following the ASEAN Summit to witness the signing of the sale and purchase contract.

In this sale, Lion Air will buy 201 737 MAX aircraft with engine has been upgraded. In addition, the Indonesia national airline will also buy 29 737-900s air craft types.

Lion Air President Director Rusdi Kirana said the new aircraft that have advanced technology and highly efficient Lion Air will help develop low-cost carrier. "The addition of these aircraft will also add new routes," he said, Friday (18/11).

RBC Capital Markets analyst Rob Stallard said, the purchase of plane by Lion Air made as an big deal for Boeing. "It means a lot to improve security to Boeing and MAX," he said.

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LION Air and SRIWIJAYA Air will work on FULL SERVICE carrier

Lion Air plans to upgrade the flight service from low cost carrier into a full-service airlines. For this full service, Lion Air to establish a new subsidiary, PT Space Aviation Service.

General Director of Lion Air, Edward Sirait claimed to have been taking care of the completeness of the business license for this Air Space. "The filing is already running, we are currently completing the documents in accordance with government regulations," said Edward.

Lion Air sees the potential flight for full services is very large. Edward saw its market continues to grow. Because of that, he hopes this Air Space could soon be operational next year. "We are targeting November 2012," he said.

To work on the full market these services, Lion Air will allocate around 10-12 aircraft. Already, it is reviewing the routes to be served. "So the market to be clear," he said.

Sriwijaya Air is also will follow to upgrade their flight service. Vice President Director of Sriwijaya Air Hasudungan Pandiangan claimed to have been collecting documents to transform into full flight carrier. "We are filling but do not propose the SIUP becuase not opening a new company. The name of the airline still remain the same, Sriwijaya Air," explains Hasudungan.

He also admitted it is reviewing the routes to be served. "We are targeting this transformation is completed in mid 2012," he said. So far Sriwijaya Air applying service to its passengers with the concept of medium service. The concept of rule-based medium may only provide a maximum tariff of 90% of the rate above the specified limit. The airline allowed to provide service snacks and beverages.

According to Bambang S Ervan, Head of Communications and Information Ministry of Transportation when the airline moved from medium service to full services without creating a new subsidiary then simply report to the Directorate General of Civil Aviation only. "Then after that the process is published to the public. While to open up a new subsidiary must submit SIUP first, "said Bambang.

The Director General of Civil Aviation Herry Bakti admitted that Lion Air’s SIUP is in the process. As for reports of Sriwijaya Air had not yet received their request for a report to the next grade to full service.

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