SANTACO

Malindo Airlines Low Cost Malaysian/Indonesian and premuim carrier Batik Airlines to be launched next year 2013 in Asia. China will also see a new carrier later next year with the venture between the fuzhou local government and Hainan group to set-up Fuzhou airlines. At the launch of an Malaysian/Indonesian carriers in Kuala Lumpur last week, Najib Razak, the Malaysian president suggested the partnership Malindo Airlines heralded a new era of co-operation between two neighbouring counries more used to bickering. While politicians with an election to challange soon might put it like that, the market has taken a different view of the establishment of Malindo Airlines.

A joint partnership between ambitious Indonesian budget airlines Lion Airways and Malaysia's National Aerospace & Defence Industries. The launch of the venture which will also include the premium carrier Batik airlines, which will be 51 percent owned by NADI and 49 percent by Lion Airways, comes just a few weeks after Malaysia's AirAsia airlines, the region's biggest budget carrier by fleet size, said it was stepping up its expansion in Indonesia by acquiring local carrier Batavia Airways.
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Santaco Airlines revealed that competition between Lion Airways, led by former travel ticket delivery boy Rusdi Kirana, and AirAsia boss, set up by flamboyant tycoon Mr Tony Fernandes, is intensifying with both now operating in each other's back yards in the fast growing South-east Asian flight market. Asia will see an influx on new airlines born such as China's Fuzhou Airlines, this is sure to push travel prices down the the South-East Asian market. This is great news for travellers globally. The question asked with all these low cost airlines operating in the same region, who will survive.

Lion Airlines has made various bids about joint partnerships in Malaysia in the past but I think this one will happen. Lion Air, which earlier this year of 2012 signed on for Boeing's largest single aircraft order, needs to expand into new asian markets to make use of its growing fleet. Indonesia's aviation market is growing rapidly and large but Indonesia's airport infrastructure cannot keep up with the rapid busy pace at which Lion Airways is buying new Boeing 737s.