Reasons of Success of

3/5/2021
Asian Low-Cost Carrier
Assignment Topic

Submitted by: Muhammad Ismail

Class: BAM-8A

Roll no: 011

Submitted to: Sir Ahmer

 Low Cost Carrier (Indonesia)

Lion Air PT Lion Mentari Airlines, operating as Lion Air, is an

Indonesian low-cost airline. Based in Jakarta, Lion Air is the
country's largest privately run airline, the second largest low-
cost airline in Southeast Asia (after AirAsia) and the largest airline of Indonesia. With Wings
Air and Batik Air, Lion Group is the country's largest airline's group. 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 has repeatedly broken records for largest aircraft orders, such as its $24 billion
order for 234 Airbus A320 jets, as well as its $22.4 billion order for 230 competing aircraft
from Boeing. The airline signed an agreement with US-based aircraft manufacturer Boeing
for fifty 737 MAX 10 passenger jets worth $6.24 billion in June 2017. The airline is Boeing's
second-largest customer (after US-based Southwest Airlines).[4] It had once been criticised
for poor operational management in areas such as scheduling and safety, although steps
have been taken to improve its safety: 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.

Company Profile

IATA ICAO Callsign

JT LNI LION INTER

Founded 15 November 1999; 21 years

ago,

Commenced 30 June 2000

operations

Operating bases Soekarno–Hatta International

Airport
Juanda International Airport
Sultan Hasanuddin International
Airport

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 Low Cost Carrier (Indonesia)

Kualanamu International Airport

Secondary hubs Ngurah Rai International Airport

Sam Ratulangi International
Airport
Sultan Aji Muhammad Sulaiman
Airport
Yogyakarta International Airport

Focus cities Minangkabau International

Airport
Sultan Mahmud Badaruddin II
International Airport
Hang Nadim International
Airport
Sultan Syarif Kasim II
International Airport
Kertajati International Airport

Frequent-flyer Lion Passport

program

Subsidiaries Airlines
Batik Air
Malindo Air
Thai Lion Air
Wings Air
Lion Bizjet
Others
Batam Aero Technic
Lion Parcel
Lion Hotel & Plaza

Fleet size 143

Destinations 60

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 Low Cost Carrier (Indonesia)

Parent company Lion Air Group

Headquarters Lion Air Tower, Jalan KH. Hasyim

Ashari, Jakarta, Indonesia

Key people Rusdi Kirana (Chairman)

Edward Sirait (President and
CEO)
Daniel Putut (Managing
Director)

Website lionair.co.id

Top Reasons Behind Lion Air’s Success

Our Network
As Indonesia’s largest domestic carrier, we connect passengers across Indonesia and to
select destinations in Asia. Indonesia is unique as an archipelago that requires air travel and
we have one of the largest route networks in the country.
As of September 2019, Lion Air operated an average of 449 flights per day covering 269
scheduled routes and 211 charter routes to 41 domestic and 20 international destinations.
We were the sole provider of flights on 109 of our routes and had a market share of 50% or
more on an additional 106 routes in terms of total route capacity.
Our interline arrangements with Batik, Wings, Malindo, and ThaiLion, mean we can offer
passengers approximately 694 additional routes and 157 additional destinations.
Our new destination strategy leverages our existing our hub-and-spoke network to tap
latent demand and aggregate passengers from smaller cities and outlying areas into flights
to and from larger This has allowed us to introduce new routes which both serve growing
Indonesian passenger demand and are viable for the growth of the business.

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 Low Cost Carrier (Indonesia)

Our Fleet
In 2000 following our establishment, Lion Air proudly rolled out a fleet of just two Boeing
737-200 aircraft. Today, we have 118 -- including the Boeing 737-900ER, Boeing 737-800,
Boeing 737 MAX 8 and Airbus A330-300 -- to meet passenger demand.
Our fleet is one of the newest in the business, and we have taken the initiative to partner
with internationally recognized organisations including OEMs (Boeing, Airbus, Honeywell),
export credit agencies (EXIM, ECA), Banks (DBJ, BNP, Citi) and Lessors (GECAS, BOCA,
Avolon) to improve our processes, including safety practices.
Ours is a high-capacity and largely uniform fleet that is also fuel-efficient and with an
average age of just 6.73 years. Such a young fleet of predominantly Boeing 737 family
aircraft delivers efficiencies, including low maintenance costs and operational reliability,
which are a win-win for Lion Air and our passengers.
Our aircraft configurations maximise space and seat availability but with the onus on crating
the very best on-board experience.

Our People
At Lion Air, we believe that people are at the heart of our success and we recognise the
importance of developing a workforce of leaders and employees who can effectively
contribute to our vision.

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 Low Cost Carrier (Indonesia)

Diversity and Employee Engagement

We are committed to creating a positive working environment for employees to make a
difference in the world. We seek to maintain a corporate culture that is defined by diversity,
fairness, inclusivity and the highest ethical standards, which are in line with our values and
essential to achieving our vision.
We believe all employees play an equally important role in the Lion Air ecosystem. We
recognise the efforts of our back-end employees who often goes unnoticed such as the
technical and engineering team that is responsible for overseeing the maintenance of our
entire fleet.
Learn more about job and career opportunities here.
Learning and Training Development
We believe in helping all employees reach their full potential and offer opportunities for
learning and development to enhance their professional and personal competencies.

Our Safety Protocol

At Lion Air, nothing is more important than safety. As a pioneer and now the largest player
in the LCC segment in Indonesia, we have made it our priority to ensure continual
improvement in all our processes including safety.
Indonesia was upgraded to US FAA 1 category rating in 2016 (having been downgraded in
2007) enabling Indonesian carriers to fly direct to the US, whilst other countries in Asia
remain on the US FAA restricted list or in a lower category. Indonesia is a member of ICAO
and has an ICAO 80.8% aviation safety rating which ranks Indonesia as #2 in ASEAN behind
Singapore.
The only acceptable level of incidents at Lion Air is zero and we benchmark our safety
practices and number of incidents against other Asian and global Airlines. We strive for full
compliance in what is a highly regulated industry, in Indonesia and in the 41 domestic and
20 international destinations we fly to.

Conclusion
The top reasons behind lion air success are

 Their huge network and large number of aircrafts

 Their Best Safety Management System
 Their Best Employee Engagement and Learning Development System
 Their Best Leadership
 Their Best Travel Experience and Travel Offers