Virus? What virus? Indonesia businessmen to launch new airline

The group of business people behind Indonesian low-cost airline Lion Air, including co-founder Rusdi Kirana, are planning a new airline despite the global aviation industry remains being battered by the strongest crisis in its history amid the coronavirus pandemic.

The new and still unnamed carrier is a project started by Kirana, Bloomberg News cited insiders. It would give them a “new start,” without giving more details.

A Lion Air spokesperson did not comment on the issue, while a spokesman for the transport ministry confirmed that the ministry was processing one application for an air operator certificate, while declining to reveal more.

Apart from his engagement in aviation, Rusdi Kirana is also a member of the Presidential Advisory Council of Indonesian president Joko Widodo. Since 2017, he also serves as the Indonesian ambassador to Malaysia.

He seems to have a hand for a successful airline business. Lion Air, which commenced operations in the year 2000, quickly grew to the country’s largest private airline and the second-largest low-cost airline in Southeast Asia behind AirAsia.

Lion Air has drawn attention for having made the largest-ever airline orders from both Boeing and Airbus. It operates five airline subsidies, namely Batik Air, Wings Air, Malindo Air, Thai Lion Air and Lion Bizjet and operated more than 630 flights a day before the pandemic.

Airline industry stuck in deepest crisis in its history

However, some observers said that they do not believe that it was the best time to launch an airline with an unclear outlook on when and to what extent the aviation and travel industry would recover.

Even though Indonesia used to have one of the busiest aviation industries in Southeast Asia due to the topography of the archipelago and the large population, airlines in the country, like all carriers around the world, are suffering from drastically falling passenger numbers due to travel restrictions.

In Indonesia alone, while passenger numbers rebounded to 1.46 million people in July from just 87,000 in May, they are still far below the 7.14 million in July last year.

National carrier Garuda Indonesia is relying on bridging loans from the government to avoid bankruptcy, while regional airline Indonesia AirAsia also seeks fresh cash from investors in order to survive.



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The group of business people behind Indonesian low-cost airline Lion Air, including co-founder Rusdi Kirana, are planning a new airline despite the global aviation industry remains being battered by the strongest crisis in its history amid the coronavirus pandemic. The new and still unnamed carrier is a project started by Kirana, Bloomberg News cited insiders. It would give them a “new start,” without giving more details. A Lion Air spokesperson did not comment on the issue, while a spokesman for the transport ministry confirmed that the ministry was processing one application for an air operator certificate, while declining to reveal...

The group of business people behind Indonesian low-cost airline Lion Air, including co-founder Rusdi Kirana, are planning a new airline despite the global aviation industry remains being battered by the strongest crisis in its history amid the coronavirus pandemic.

The new and still unnamed carrier is a project started by Kirana, Bloomberg News cited insiders. It would give them a “new start,” without giving more details.

A Lion Air spokesperson did not comment on the issue, while a spokesman for the transport ministry confirmed that the ministry was processing one application for an air operator certificate, while declining to reveal more.

Apart from his engagement in aviation, Rusdi Kirana is also a member of the Presidential Advisory Council of Indonesian president Joko Widodo. Since 2017, he also serves as the Indonesian ambassador to Malaysia.

He seems to have a hand for a successful airline business. Lion Air, which commenced operations in the year 2000, quickly grew to the country’s largest private airline and the second-largest low-cost airline in Southeast Asia behind AirAsia.

Lion Air has drawn attention for having made the largest-ever airline orders from both Boeing and Airbus. It operates five airline subsidies, namely Batik Air, Wings Air, Malindo Air, Thai Lion Air and Lion Bizjet and operated more than 630 flights a day before the pandemic.

Airline industry stuck in deepest crisis in its history

However, some observers said that they do not believe that it was the best time to launch an airline with an unclear outlook on when and to what extent the aviation and travel industry would recover.

Even though Indonesia used to have one of the busiest aviation industries in Southeast Asia due to the topography of the archipelago and the large population, airlines in the country, like all carriers around the world, are suffering from drastically falling passenger numbers due to travel restrictions.

In Indonesia alone, while passenger numbers rebounded to 1.46 million people in July from just 87,000 in May, they are still far below the 7.14 million in July last year.

National carrier Garuda Indonesia is relying on bridging loans from the government to avoid bankruptcy, while regional airline Indonesia AirAsia also seeks fresh cash from investors in order to survive.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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