Lion Air History

PT Lion Mentari Airlines, operating as Lion Air, is Indonesia’s largest privately run airline, capturing the largest share of the domestic market. Headquartered in Jakarta, Indonesia, Lion Air flies to cities within Indonesia and to Singapore, Vietnam, Malaysia and Saudi Arabia and some charter routes to China Mainland and Hong Kong. Its main base is Soekarno-Hatta International Airport, Jakarta.^[2] It operates scheduled passenger services on an extensive network from Jakarta to 79 Destinations.^[3]

Lion Air has been rapidly expanding its fleet to meet the need for medium-haul jets in the world's fourth most populous country. On March 2013 Lion air & Airbus signed a $24-billion contract - recorded as the most valuable commercial order booked in history - for 234 A320s. The second biggest was also made by Lion Air in 2011, in a $22.4-billion order for 230 Boeing jets.^[3]

History [edit]

A Lion Air MD-82 at Sultan Hasanuddin International Airport

The airline was established in October 1999 and started operations on June 30, 2000, when it began scheduled passenger services between Jakarta and Pontianak using a leased Boeing 737-200. It is owned by Rusdi Kirana and family.^[2] The airline is also planning to join IATAand therefore hoping to become the second IATA Indonesian member carrier after Garuda Indonesia. Lion Air failed, in early 2011, the initial IATA assessments for membership due to safety concerns. Lion Air and Boeing are pioneering the use of Required Navigation Performance (RNP) procedures in Indonesia, having successfully performed validation flights at the two terrain-challenged airports of Ambon and Manado.^[4]

Starting February 2010, Lion Air increased the number of flights to Jeddah to five times weekly. This route is being served by two Boeing 747-400aircraft, which are fitted with 496 seats each.^[5]

Aviation Week has reported that Lion Air is planning to establish a joint-venture with Malaysian regional carrier Berjaya Air, in order to create a Malaysian subsidiary. However, the venture was canceled after it became clear that AirAsia and MAS would collude rather than compete.

From 19 July 2011, Lion Air has grounded 13 planes due to sanction caused by bad on-time performance (OTP) until Lion Air can fulfill at least 80 percent of OTP. The transportation ministry recorded that Lion Air's OTP of 66.45 percent was the worst of six airlines in an assessment conducted from January to April 2011 at 24 airports nationwide.^[6][7] On the other hand, airlines using Jakarta airport face considerable delays to their schedules due to runway congestion.^[8]

On 18 November 2011, the airline jointly announced with Boeing for a record-setting order of 201 Boeing 737 MAX and 29 Boeing 737-900ER planes setting the record for the world's biggest single order of 230 planes for a commercial airline worth $21.7 billion.^[9]

In January 2012, the Transportation Ministry said that it sanctioned Lion Air because some of its pilots and crew members were found in recent months to be in possession of crystalmethamphetamine. In late 2011 Muhammad Nasri and two other co-pilots were arrested at a party in Tangerang; and in early 2012 a pilot was caught in possession of crystal meth in Makassar.^[10] On 4 February 2012, another Lion Air pilot was arrested following a positive urinalysis test for use of methamphetamine; he was scheduled to fly on Surabaya-Makassar-Balikpapan-Surabaya flight hours later.^[11] The licenses of the pilots and crew have been revoked.

Lion Air is planning to create a long-haul airline called Batik Air, which will begin operations in 2013 using 737-900ERs. Lion Air also signed a commitment with Boeing to order five 787 Dreamliners for the airline, making it the first Indonesian airline to order the type since Garuda Indonesia cancelled its firm orders for 10 Dreamliners in 2010, and hopes to have them delivered by 2015.^[12] The airline had also been considering ordering the competing Airbus A330 widebody, but opted to purchase the 787.^[13]

On 11 September 2012, Lion Air and National Aerospace & Defence Industries Sdn Bhd (Nadi) signed a joint-venture agreement to set up a new airline in Malaysia, to be called Malindo Airwaysby May 2013. The two partners also agreed to form another joint venture to provide aircraft maintenance services to all aircraft in the Lion Air Group, including any joint-venture airlines.^[14]

Destinations [edit]

Main article: Lion Air destinations

Lion Air serves 60 destinations, 55 domestic and 4 international (as of December 2012).

Current fleet [edit]

Lion Air Boeing 737-900ER at Singapore Changi Airport

This section needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (March 2012)

As of December 2012, the Lion Air fleet consists of the following aircraft with an average age of 5 years:^[15]

Aircraft	In Service	Orders[16][17]	Passengers			Notes
			J	Y	Total
Airbus A320-200	—	60[18]	TBA			—
Airbus A320neo	—	109	TBA			—
Airbus A321neo	—	65	TBA			—
Boeing 737-300	2	—	0	149	149	To be retired
Boeing 737-400	5	—	0	168	168	Exit from service in 2017.
Boeing 737-800	15	12	0	189	189	Orders converted from -900ER; one written-off.
Boeing 737-900ER	67	90	0	213	213	Launch Customer
Boeing 737 MAX 9	—	201	TBA			Launch Customer[19]
Boeing 747-400	2	—	22	484	496	Bought from Oasis Hong Kong Airlines
McDonnell Douglas MD-82	1	—
Total	92	537

Orders [edit]

Lion Air was the launch customer of the 737-900ER, seen here on the type's first flight

Lion Air was the launch customer for the largest variant of the Boeing 737, the 737-900ER, which it placed an order for in 2005. On 26 May 2005, Lion Air signed a preliminary agreement with Boeing for the purchase of up to 60 Boeing 737 Next Generation aircraft, valued at $3.9 billion at list prices. Lion Air confirmed their order in July 2005 and became the launch customer for the Boeing 737-900ER with firm orders for 30 aircraft and options for 30 more, which were later converted into firm orders. The -900ER can carry up to 215 passengers in a single-class layout, and is powered by CFM56-7B turbofan engines. On 27 April 2007, Boeing delivered the first 737-900ER to Lion Air. The aircraft was delivered in a special dual-paint scheme that combines Lion Air's logo on its vertical stabilizer and the Boeing "Dreamliner" livery on the fuselage.

Lion Air set a record when it placed an order for 230 aircraft from Boeing, making this the largest order in terms of aircraft ordered as well the cost of the order. In November 2011, Lion Air and Boeing announced that the airline planned to buy 29 737-900ER and 201 737 MAX aircraft, with options for 150 more, valued at $21.7 billion at the time.^[9] A firm order was signed on 14 February 2012, with the 737 MAX aircraft identified as 737 MAX 9s, making Lion Air the launch customer for that variant.^[20] By the time of the signing, the order's value had risen to $22.4 billion at list prices, the largest aircraft order in history.^[20] Additionally, the engines for the -900ERs, CFM 56-7s, cost about $580 million and the engines for the MAXs, CFM LEAP-1Bs, cost about $4.8 billion.^[20] Deliveries of the -900ERs are to start in 2016, with the MAXs to follow in 2017.^[20]

On Monday 18 March 2013 Lion Air placed an order for 234 A320 jets with Airbus, the largest single order ever made surpassing previous record by Boeing ($22.4 Billion). The contract, which was signed at the Elysée Palace in the presence of President François Hollande and several government ministers, is worth €18.4 billion ($24 billion) at catalogue prices, the French presidency said.^[21]

Former fleet [edit]

Aircraft	Total	Note
Airbus A310[22]	2
Boeing 737-200[23]	2
McDonnell Douglas MD-90-30	5
Yakovlev Yak-42[24]	1

EU aviation blacklist [edit]

Main article: List of air carriers banned in the European Union

Lion Air is currently banned from operating in European airspace. The ban was imposed by the European Commission in consultation with member states' aviation authorities after Lion Air was found unsafe to conduct operations anywhere in European airspace.^[25][26]

Private jet business [edit]

In early 2012, the Transportation Ministry said that the airline was processing an Air Operator Certificate (AOC) for their private business jets. Private-jet services will be launched in the third quarter of 2012 with 4 of nine-seater jets Hawker 900 XP. The aim is to serve clients from the country's mining industry and will compete with Susi Air and Royal Jet.^[35]

Garuda Air

PT Garuda Indonesia (Persero) Tbk (IDX: GIAA), publicly known as Garuda Indonesia, is the flag carrier of Indonesia. It is named after the mythical giant bird Garuda of Hinduism and Buddhist mythology.

Its headquarters is located at the Soekarno-Hatta International Airport in Tangerang, near Jakarta. The company was listed on Indonesia Stock Exchange in February 2011, with the government of Indonesian retaining a majority of the shares. The airline employs 15,808 staff (as of December 2010).^[1]

The airline's main hub is Soekarno-Hatta International Airport, with other hubs at Ngurah Rai International Airport, Bali; Sultan Hasanuddin International Airport, Makassar; and Polonia International Airport, Medan.^[2][3][4] The airline flies to a number of destinations in Southeast Asia, East Asia, the Middle East, Europe and Australia. In May 2008, Garuda Indonesia received its IATA Operational Safety Audit (IOSA)^[5] and in 2010 for the second time (consecutive).^[6] Garuda Indonesia is currently an official sponsor of 2011 SEA Games and Liverpool FC.

The Beginning

Garuda Indonesia had its beginnings in the Indonesian war of independence against the Dutch in the late 1940s, when Garuda flew special transports with a Douglas DC-3.^[7] 28 January 1949 is generally recognized as the airline's founding date, at which time the airline was known as "Garuda Indonesian Airways." The first aircraft was a DC-3 known as Seulawah (Acehnese: "Gold Mountain") and was purchased for a sum of 120,000 Malayan dollars, which was provided by the people of Aceh (notably local merchants).^[8] During the revolution, the airline supported Indonesian interests, such as carrying Indonesian leaders for diplomatic missions. Now, a chartered Garuda Indonesia Airbus A330-300 is used by the President of Indonesia for presidential travels.

The Burmese government helped the airline significantly during its beginnings. The country's national airline, Union of Burma Airways, often chartered this DC-3 for its own flights. Accordingly, upon Garuda's formal joint incorporation with KLM on 31 March 1950, the airline presented the Burmese government with a DC-3. By 1953, the airline had 46 aircraft,^[7] although by 1955 its Catalina fleet had been retired. Fourteen De Havilland Heron aircraft were acquired to serve shorter range routes. In June 1956, Garuda made its first Hajj flight, operated with a Convair 340 carrying 40 Indonesians, to the city of Mecca.^[7]

The name "Garuda" was derived from a Dutch poem written by a renowned scholar and poet Raden Mas Noto Soeroto;^{[citation needed]} "Ik ben Garuda, Vishnoe's vogel, die zijn vleugels uitslaat hoog boven uw eilanden" which means "I'm a Garuda, Vishnu's Bird, spreads its wings high above the Islands"

The line was mentioned by Sukarno during the Dutch-Indonesian Round Table Conference at The Hague, from August 23 to November 2, 1949.

The 1960s: Growth and expansion [edit]

Garuda Indonesian Airways Fokker F-28at Paris Air Show in 1973

The 1960s were times of growth for the airline; the fleet in 1960 included eight Convair 240s, eight Convair 340s and eight Convair 440s. In 1961 and late 1965, three Convair 990 jet aircraft were introduced along with three Lockheed L-188 Electras, and a route was opened to Kai Tak International Airport inHong Kong. After concentrating on domestic and regional services, the first flights to Europe were added on 28 September 1963, to Amsterdam andFrankfurt. In 1965, flights to Europe were expanded to include Rome and Paris via Bombay and Cairo, with the exclusive use of Convair 990 aircraft. That year, flights to People's Republic of China started, with Garuda flying to Canton via Phnom Penh. Also in 1965, the jet age arrived for Garuda, with a Douglas DC-8 that flew to Amsterdam's Schiphol Airport via Colombo, Bombay, Rome and Prague.^[7]

1970s–1980s: New equipment [edit]

A Garuda Indonesia Boeing 747-200(named City of Jakarta) at Zurich,Switzerland. (1985)

In early 1970s, Garuda Indonesia introduced McDonnell Douglas DC-9 and Fokker F28 jets, and at one point Garuda owned 62 Fokker jets, making Garuda the world's largest operator of F28s at that time. In 1973, the carrier introduced the Douglas DC-10; it later introduced the Boeing 747-200, in 1980, and Airbus A300-B4 on 21 June 1982. Garuda was the launch customer for Airbus A300 with two-man crew cockpit (designated A300B4-220FFCC). By 1984, nine of these were in service, supplemented by 8 Douglas DC-10s, 24 Douglas DC-9s, 45 Fokker F-28s, and 6 Boeing 747-200s. In 1985 under Reyn Altin Johannes Lumenta Garuda created a controversy by hiring foreign brand consultants Landor Associates to create a new logo and colour scheme for Garuda Indonesia, a project that cost the company millions of US dollars. This move was later on applauded as vital for the reputation and corporate identity of Garuda Indonesia as the national airline. Lumenta also increased flights frequency and destinations, reduced ticket prices and collaborated with Merpati, introducing flexible tickets valid for both Indonesian airlines.^[9] During the 1970s the airline had its headquarters in Jakarta.^[10]

1990s: The difficult time for Garuda [edit]

In 1991, Garuda purchased 9 McDonnell-Douglas MD-11s;^[7] it later introduced Boeing 747-400 in 1994 (two of them were purchased directly fromBoeing, the third was ex-Varig), and Airbus A330-300, in 1996. But during this time, Garuda suffered two major accidents. The first of these happened in Japan in the summer of 1996; the second happened in 1997 when an Airbus A300 crashed near Medan, North Sumatra, killing everyone aboard in what remains Indonesia's worst aviation disaster. The 1997 Asian financial crisis hit Indonesia and Garuda hard, resulting in severe cutbacks on unprofitable routes. Despite once having a comprehensive worldwide route network, Garuda currently suspends services to United States, despite once flown to Honolulu and continues to Los Angeles. Largely due to historical links with the Netherlands, Garuda continued to operate flights to Amsterdam and Frankfurt after the initial cutbacks, although these flights were also discontinued from 28 October 2004. The situation was exacerbated by the September 11, 2001 terrorist attacks in the U.S., the Bali bombings, the 2004 Indian Ocean earthquake and tsunami, and the SARS scare, all of which contributed to a downturn in air travel and Indonesian tourism. However, by 2005, the airline had largely recovered from its economic problems.^[11]

In 2001, Garuda established a low-cost subsidiary, CitiLink, to provide shuttle services between Indonesian cities. The carrier stated operations with five ex-Garuda Indonesia Fokker F28s.

There was speculation that Garuda would expand its route map again before the end of the decade, possibly after the scheduled completion of the new Medan airport, Kuala Namu International Airport, in 2009. However, completing the new airport has been delayed until 2012. This could include routes to major European hubs such as Paris, London, and Frankfurt, pending clearance by the European Union.

The Garuda Indonesia Boeing 737 old and new livery line up at Soekarno Hatta International Airport, Indonesia. The far right is the new livery. (2010)

In June 2007, the EU banned Garuda Indonesia, along with all other Indonesian airlines, from flying into any European countries,^[12][13] following thecrash of a Boeing 737-400 earlier that year. With the support of the international aviation industry for all Indonesian airlines, the EU promised to review its ban and sent a team of experts, led by the European Commission's Air Safety Administrator Federico Grandini to Indonesia to consider lifting the ban.^[14] In August 2007, the transportation minister of Indonesia announced that the EU would lift its ban hopefully somewhere in October, stating that the ban was attributed to communication breakdown between the two parties and that discussion was in progress. In November 2007, Garuda announced its intention to fly to Amsterdam from Jakarta and Denpasar on the condition that the European Union lifted the ban on the airline. Airbus A330s and Boeing 777 were aircraft that were suggested as being suitable for use on these revitalised routes.^[15] On November 28, 2007, the EU refused to lift its ban on Garuda flying to all European countries. It announced the safety reforms already undertaken were a step in the right direction for the EU to consider lifting the ban, but still did not satisfy the EU's aviation safety standards.^[16] The ban was lifted in July 2009.^[17] In the wake of the ban being lifted, Garuda plans to start services to Amsterdam and is considering other European destinations in the near future. Management is also considering servicing the US where it currently has no services.^[18]

In July 2007, the Deputy of Marketing, Ministry of Culture and Tourism of Indonesia announced that Garuda Indonesia had plans to start service to India, although the date had not been determined.^[19]

In July 2009, following a third mission led again by Federico Grandini,^[20] the European Commission lifted Garuda Indonesia's ban from flying into Europe. This was followed by three other airlines.^[21]

2009–Present: "Renaissance" [edit]

A Garuda Indonesia Boeing 737-800 with new livery approaching Ngurah Rai International Airport, Bali (2010)

Following the lifting of the EU ban against Garuda Indonesia and three other Indonesian carriers, the airline announced in July 2009 an aggressive five-year expansion plan known as the Quantum Leap.^[22][23] The plan involved an image overhaul, including changing the airline's livery, staff uniform andlogo. Within a five-year period, its fleet would double from 62 to 116 aircraft.^[22] The Quantum Leap also plans to boost passenger annual numbers to 27.6 million in the same period, up from 10.1 million at the time of program launch through increasing domestic and international destinations from 41 to 62.^[22] Route expansions included Amsterdam, with a stopover in Dubai, in 2010. A non-stop flight using Boeing 777-300ERs is planned for 2013. Other routes to world hubs such as London, Frankfurt, Paris, Rome, Madrid and Los Angeles are being considered for reopening.^{[24][25][26][27][28]}

In 2009, Garuda adopted a new logo and aircraft color scheme, replacing designs that had been in use for over 20 years.^[29] New uniforms were introduced in 2010.^[30]

At the 2010 Farnborough Airshow, Garuda announced an order for another six A330-200 airliners.^[31] According to Garuda Indonesia’s Technical Director, Garuda Indonesia planned to buy nine Boeing 737-800s and two Airbus 330-200s in 2011.

With aims to improve flight capacity and frequency to eastern Indonesia, Garuda Indonesia opened a third hub located at the Sultan Hasanuddin International Airport, Makassar, South Sulawesi from June 1, 2011. The company's first two hubs are Soekarno-Hatta International Airport in Cengkareng, Jakarta, and Ngurah Rai International Airport in Denpasar, Bali.^[32]

Garuda Indonesia is increasing the flight frequency of its domestic and international routes. Of the international routes, Garuda is increasing its frequency of Jakarta-Singapore to 8 times per day with a Boeing 737-800, Jakarta-Bangkok to 3 times per day with a Boeing 737-800, Jakarta-Hongkong to 2 times per day with an A330-200 and a Boeing 737-800, Jakarta-Beijing to 5 times per week with an Airbus A330-300 and an A330-200, Jakarta-Shanghai to 5 times per week with an A330-200 and an Airbus A330-300, and Denpasar-Seoul to 5 times per week with a Boeing 747-400 and an A330-300. Garuda intends to reopen its flights to Manila on November 2011. On 25 May 2012 Garuda reopened its direct flight to Taipei. International routes that are still under consideration to be reopened are Mumbai and Chennai in India. These destinations will be served from Jakarta by an Airbus A330-200. Routes such as Frankfurt, London, Rome, Paris, and Los Angeles will be reopened when the Boeing 777-300ER arrives. However, Garuda plans to wait for the route to Amsterdam to settle first, prior to the reopening other European routes and probably the route to Los Angeles.^[33]

At the Paris Air Show 2011, Garuda Indonesia announced a firm order of 25 Airbus A320s with an option for another 25.^[34] All 25 Airbus A320s are to be used by their subsidiary, Citilink^[35]

On April 27, 2012 PT Trans Airways bought 10.9 percent stake of Garuda Indonesia unsold IPO shares from Garuda's IPO underwriters at Rp620 each for totally Rp1.53 trillion ($166.8 million). The price is higher than the lowest market price at Rp395 each, but still below IPO price at Rp750 each.^[36]