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Lion Air and NADI announced a JV - Malindo Air

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Lion Air Establishing LCC In Malaysia

Aug 9, 2011

By Leithen Francis

 

Lion Air, Indonesia’s largest airline, plans to transform little-known carrier Berjaya Air into a low-cost carrier for Malaysia.

 

The Berjaya Group tells the Malaysia stock exchange that Lion Air will own 49% and it will retain 51%, with the deal expected to be concluded in the second half of the year. It says the Berjaya Group and Lion will participate in a rights issue to raise 60 million ringgit ($20 million) to recapitalize the airline.

 

“The local aviation industry has seen some tremendous changes with the introduction of several regional and long-haul budget airline operators during the last decade,” says the Berjaya Group, adding that “the success of the business models of these low-cost carriers has proven that there is ample demand for the movement of passengers to and from Malaysia, as well as among regional destinations.

 

“Berjaya Group hopes the proposed joint venture with Lion Air will allow Berjaya Air to successfully expand its business horizon beyond Malaysia by capitalizing on its Indonesian partner’s experience and ‘economies of scale’ in the aviation services industry with a large fleet of aircraft and an expansive reach of destinations,” it says.

 

Berjaya Air operates three de Havilland Dash 7s and one ATR 72-500, according to the Ascend database. It is based at Kuala Lumpur International Airport but also operates from Singapore to Malaysia’s Tioman and Redang islands, where the Berjaya Group owns resorts.

 

Lion Air has wanted to expand out of Indonesia for many years to compete against AirAsia in Malaysia. A few years ago, AirAsia expanded internationally by launching Indonesia AirAsia.

 

from here

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Considering MH-AK share swap, this might be the third force needed to counter the possible duopoly. Just hope they don't bring along their safety and MX culture as well...

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Given LCC business model has surplus cash and Lion Air is proven in Indonesia, as long as VT don’t have management control and control of the cash flow, the airline can survive and give the public a choice.

 

:drinks:

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If succeed, this should be a good news considering MH-AK share swap...if Lion Air and Berjaya Air can do domestic flights in LCC arena is not bad, as we only have airlines from Malaysia to fly domestic flights...plus if they buy more B737-900ER and deployed it here is nice too...

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Should this JV materialized; probably we will see the creation of Lion Air Malaysia :rolleyes:

 

Wishing them all the best in the endeavor.

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It may be called Berjaya Lion Air too!

 

I, for one, welcome competition so that we can keep the MH-AK duopoly honest... :)

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web.jpg

 

Indonesia's Lion Air and Malaysia's National Aerospace & Defence Industries (NADI) are on the verge of forming a new joint venture airline in Malaysia.

 

"As we continue to grow and develop our business, we will be working with Lion Group, Indonesia's largest privately-run airline, to provide their fleet with MRO services, as well as embarking on a strategic partnership to introduce a new airline to the region," NADI said in an event invitation to celebrate the joint venture on 11 September 2012.

 

When Flightglobal contacted Lion to learn more, the Indonesian carrier declined to discuss details of the joint venture such as its business model, shareholder structure, aircraft types and routes.

 

The event will be held in a hotel in Kuala Lumpur and will be attended by Malaysian prime minister, Najib Razak.

 

The news comes just one week after Malaysia's AirAsia gained approval from the Indonesian government to acquire Batavia Air. The deal, likely to be completed in the second quarter of 2013, will add 33 aircraft to AirAsia Indonesia's current fleet of 19. The move will strengthen AirAsia's competitive position in Lion's home market.

 

NADI is a conglomerate involved in aerospace businesses such as MRO, engine modifications and upgrades, aerospace parts manufacturing and avionics.

 

Source: http://www.flightglo...venture-376202/

Edited by flee

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Sounds a good news for us, especially the domestic markets...let's see how it goes, time shall tell...and bring in 737-900ER (or even the MAX series when it is out from Boeing sometimes later)...

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I hope this THIRD attempt by Lion Air will bear fruit. I'm longing to see a new (successful) Malaysian airline which is not owned by either MAS or AirAsia. Will be cool to see Lion Air fleet at KLIA 2 soon. Wish them luck!

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NADI if i'm not mistaken owns AIROD. The first major deal to be struck out of all this I presume would be an expansion of AIRODS existing military-centric MRO capacity to include the Civil Aerospace sector by providing third party maintenance work for the Lion Group.

 

It will be interesting to see too how DCA(M) will accomodate Lions application for an AOC in Malaysia - [Rumour] Previous attempts have been turned down due to a failure of Lion group to meet minimum required levels of safety in audits conducted by third parties other than DCA(M) - i.e. CASA (Australia) & EASA (Europe) - This too was in tandem with a bleak IOSA Report on Indonesian Civil Aviation released in 2007.

 

Interesting developments nonetheless - Let's see what comes of it!

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Tan Sri TF having been granted permission to go ahead with purchase of Indonesian entity (read AOC) recently, it will be politically and diplomatically inappropriate to deny Lion's Malaysian AOC application - safety audits and what nots withstanding :)

Imagine the stink that can be kicked up :p

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NADI if i'm not mistaken owns AIROD. The first major deal to be struck out of all this I presume would be an expansion of AIRODS existing military-centric MRO capacity to include the Civil Aerospace sector by providing third party maintenance work for the Lion Group.

 

It will be interesting to see too how DCA(M) will accomodate Lions application for an AOC in Malaysia - [Rumour] Previous attempts have been turned down due to a failure of Lion group to meet minimum required levels of safety in audits conducted by third parties other than DCA(M) - i.e. CASA (Australia) & EASA (Europe) - This too was in tandem with a bleak IOSA Report on Indonesian Civil Aviation released in 2007.

 

Interesting developments nonetheless - Let's see what comes of it!

 

is NADI etc related or linked to malaysian helicopters ?

Edited by amanairways

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Awful airline with some of the most cramped and uncomfortable seats I’ve ever experienced.

 

In addition to the 5 or 6 times I took them from SIN-CGK they were late

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Tan Sri TF having been granted permission to go ahead with purchase of Indonesian entity (read AOC) recently, it will be politically and diplomatically inappropriate to deny Lion's Malaysian AOC application - safety audits and what nots withstanding :)

Imagine the stink that can be kicked up :p

Important that local and international rules and regulations must be adhered to before AOC is granted. Otherwise, DCA will lose credibility with ICAO.

 

I, for one, will not fly on an airline that does not comply with international safety standards.

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I flew with Lion once. It was so uncomfortable plus the flight was delayed and the pax were given the run around, that I just didn't use the return ticket and flew back on GA. Was willing to loose the money than to punish myself again.

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Safety and the upkeep of Professional & Safe Industry practice is paramount to the continued 'success' of the Civil Aviation scene in Malaysia.

 

Lion's eyes on establishing a venture in Malaysia could well and truly be an effort to improve their safety image by adopting Malaysian DCA standards into their Maintenance and Flight Operations culture. I once worked in Line Maintenance [industrial Training] for a sizeable Malaysian outfit which seconded Indonesian expatriate pilots during a critical expansionary phase and will always remember a comment from an Indonesian Captain regarding the servicibility of his aircraft; The Engine Vibration Display on the classic 737 (I can't recall correctly if it were one or both - anyone with access to a 737 MEL can verify this) was U/S and by the MEL, the aircraft was non-dispatchable. The Indonesian Captain remarked;

 

"In my previous Airline in Indonesia, it wouldn't have mattered - we would have gone - But I ain't messing with DCA Malaysia - if it says no, then we stay and look for another aircraft!"

 

Whilst such a statement is singular in nature - reading through the above mentioned ICAO/IATA safety audit on Indonesian Civil Aviation PRE-2007, one may conclude that such practice was indeed common-place in the post-deregulated Indonesian scene.

 

 

SOME BACKGROUND:

The proposed LionAir tie-up previously with Berjaya had its own can of worms - the latter being what many consider a cash strapped/niche operator that had limited expansion capability due to its limited spread of self-reliant operation.

 

NADI through AIROD has had ambition to expand its MRO capacity into the Civil Sector - Classic C130 Retrofits and MRO operations plus a handful of steady income from MinDef limit financial growth for the company. A conversation between myself and AIRODS head of development revealed 6 years ago an interest, but not yet an intent at becoming a major player in the Civilian MRO sector. Back then, I had suspected that TF and Gang were courting NADI and AIROD in collaboration with ST Technologies to establish an A320/B737 facility to look after the expanding AirAsia group. This did not eventuate and instead, we saw the quiet birth of SAE - Sepang Aerospace Engineering - A company still very much in its infancy.

 

NADI/AIROD have strong political connections and in today's election fuelled climate - an announcement involving the PM himself would tend to suggest the DCA taking a back seat - albeit with a scrutinising and watchful eye - at the development and issue of the AOC.

 

I would hope, that with such a commitment being made, established practices and standards are not lost for the benefit of short-term political mileage. The potential long-term damage to an already financially insecure industry [in the context of the Malaysian economy] far outweigh any benefits at this stage with what little information I have to ponder on.

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It's on like Donkey Kong!

 

Published: Tuesday September 11, 2012 MYT 12:40:00 PM

Updated: Tuesday September 11, 2012 MYT 12:47:37 PM

 

Malaysia' Nadi, Indonesia's Lion Air in low-cost carrier JV

 

By BK Sidhu

 

 

KUALA LUMPUR: Malaysia's Nadi Sdn Bhd and Indonesia's PT Lion Air are teaming up to set up a low-cost carrier, Malindo Airway to ply the Asean routes, using the KLIA2 as the base.

The joint venture agreement was signed on Tuesday and the new carrier would focus on short-haul flights in the region.

Nadi is a unit of the National Aerospace & Defense Industries, formerly known as Aerospace Industries Malaysia Sdn Bhd, which is a significant player mainly in the aerospace and defence industries, located in Subang.

Companies under the Nadi Group are Airod, Airod Techno Power, Aerospace Technology Systems Corp & SME Aerospace that primarily serves maintenance, repair & overhaul, engines modifications and upgrades, aerospace parts manufacturing and avionics.

Lion Air is Indonesia's largest private carrier. It flies to more than 36 cities in Indonesia and many other destinations such as, Singapore, Malaysia and Vietnam on a fleet of brand new Boeing 737-900ER.

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It's on like Donkey Kong!

 

Published: Tuesday September 11, 2012 MYT 12:40:00 PM

Updated: Tuesday September 11, 2012 MYT 12:47:37 PM

 

Malaysia' Nadi, Indonesia's Lion Air in low-cost carrier JV

 

By BK Sidhu

 

 

KUALA LUMPUR: Malaysia's Nadi Sdn Bhd and Indonesia's PT Lion Air are teaming up to set up a low-cost carrier, Malindo Airway to ply the Asean routes, using the KLIA2 as the base.

The joint venture agreement was signed on Tuesday and the new carrier would focus on short-haul flights in the region.

Nadi is a unit of the National Aerospace & Defense Industries, formerly known as Aerospace Industries Malaysia Sdn Bhd, which is a significant player mainly in the aerospace and defence industries, located in Subang.

Companies under the Nadi Group are Airod, Airod Techno Power, Aerospace Technology Systems Corp & SME Aerospace that primarily serves maintenance, repair & overhaul, engines modifications and upgrades, aerospace parts manufacturing and avionics.

Lion Air is Indonesia's largest private carrier. It flies to more than 36 cities in Indonesia and many other destinations such as, Singapore, Malaysia and Vietnam on a fleet of brand new Boeing 737-900ER.

 

 

Malindo Airways? euww...Prefer they use the name Lion AIr Malaysia.

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'Malindo' is an old term coined more than 50yrs ago (I think) when there was strong sentiment that MY and ID should combine to form a new country. At one stage even PH was considered, with the term 'Maphilindo' proposed. Never happened, thank God! :)

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Malindo ?

Those who are proficient in the Chinese Hakka dialect will be permitted a few chuckles I reckon :p

 

Permission Granted!

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