Lion Air joins race for LCC supremacy

April 2, 2014
, by wego admin

INDONESIA is one of the fastest-growing travel markets in the world today. “Couple this with the incredible amount of nationals embracing mobile and social media, along with a growing economic base, and it’s safe to say Indonesians will be travelling in even greater numbers in the future,” says Wego chief flights officer Dean Wicks.

Malaysian and Indonesian airlines are racing through the skies at breakneck speed leading the charge to rule Southeast Asia’s low cost carrier (LCC) market, translating into huge savings on airfares and a flurry of promotional offers for travellers.

“Air Asia currently owns 520 aircraft (including orders) and is currently the largest, however it’s about to be overtaken in fleet number by Indonesian operated Lion Air who has 721 aircraft (including orders),” Wicks tells TTN. “While Lion Air is well- known in Indonesia’s domestic market, the carrier will require a huge investment commitment to grow its brand awareness and gain comparative market share in Air Asia’s well-established regions.”

Domestic travel in Indonesia has been on a steady rise over the past couple of years, however, airlines will look to expand further into Southeast Asia in the immediate future, predicts Wicks. “With the introduction of LCCs we’ve seen Thailand, Philippines, Malaysia and Singapore become established LCC markets. Other emerging countries in Indochina, such as Myanmar, where economies are at the early stages of growth, are the logical next step for new LCCs and whole new travelling markets.

“As regulations change in China, Taiwan and even Japan (whose LCC markets are still small), the potential opportunities for Indonesia, especially in Bali, are enormous. In fact, Hainan Airlines has begun offering three direct flights per week from Beijing to Bali, as the Chinese interest in the tourist island continues to grow.

“I believe we’ll also see a huge push by Indonesian airlines for new and additional services to Australian destinations, followed by North Asia and the Middle East,” concludes Wicks.

Read more :