The Lion Air Group is planning to deploy a "new"l service air carrier Batik Air Australia to service the Australia market that the Group views as highly lucrative.
The CEO of Lion Air, Rusdi Kirana, told Bisnis.com that he has dispatched a team to Australia to undertake a detailed feasibility study while seeking the needed permits from Australian aviation authorities.
“The entire process can take one year. Therefore we are estimating that sometime next year Batik Air Australia can begin operations,” explained Kirana on Saturday, May 17, 2014.
The proposed airline will serve domestic routes in Australian connecting major cities such as Sydney, Melbourne, Canberra and Brisbane.
“Batik Air Australia will use several new aircrafts brought in by the Lion Air Group from either Boeing or Airbus,” he said.
The general director of Lion Air, Edward Sirait said the detailed feasibility study undertaken by the Lion Air Group was done to absolutely confirm the business prospects of Batik Air Australia.
“As a private company, we have to be wise in making business calculations and determining which markets have the most potential,” explained Sirait.
Another reason cited by Sirait for the detail market and feasibility study being undertaken in Australia is the fact that the civil aviation market in Australia is not as promising as that in the United States, with the Australian market in decline and cost saving measures being undertaken by other carriers taken into consideration.
Lion Air has place massive orders for new aircraft for delivery over the coming few years further necessitating the need to expand is flight network.
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