History
The airline was established in October 1999 by Rusdi and Kusnan Kirana and started operations on 30 June 2000, when it began scheduled passenger services from Jakarta to Denpasar and Pontianak using a leased Boeing 737-200. It was the first low-cost airline in Indonesia. The fleet was quickly expanded with the wet-lease of five Yakovlev Yak-42Ds, two McDonnell Douglas MD-82s and two sub-leased Airbus A310-300s. Rapid growth enabled modernisation of the fleet with Boeing 737-300 and Boeing 737-400 aircraft. In 2003, a subsidiary airline was established, Wings Air, operating flights on lower density routes. Further subsidiaries were developed including Malindo Air in Malaysia in 2012, Thai Lion Air in Thailand in 2013 and domestically, Batik Air, a full-service subsidiary, also in 2013.[8]
The airline is planning to join the International Air Transport Association (IATA) and 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 pioneered 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.[9]
From 19 July 2011, Lion Air grounded 13 aircraft due to sanctions caused by bad on-time performance (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.[10][11] On the other hand, airlines using Jakarta airport faced considerable delays to their schedules due to runway congestion.[12]
On 18 November 2011, the airline jointly announced with Boeing a record-setting order of 201 Boeing 737 MAX and 29 Boeing 737-900ER aircraft, setting the record for the world's biggest single order of 230 aircraft for a commercial airline worth $21.7 billion.
In January 2012, the Transportation Ministry said that it had sanctioned Lion Air because some of its pilots and crew members were found in recent months to be in possession of crystal methamphetamine. In late 2011, Muhammad Nasri and two other co-pilots were arrested at a party in Tangerang; in early 2012 a pilot was caught with crystal meth in Makassar.[13] On 4 February 2012, another Lion Air pilot was arrested following a positive urinalysis test for use of methamphetamine; he was scheduled to fly the Surabaya-Makassar-Balikpapan-Surabaya flight hours later.[14] The licenses of the pilots and crew were revoked.[15]
On 18 March 2013, Lion Air signed a contract to purchase 234 Airbus aircraft worth US$24 billion in France and witnessed directly by French President François Hollande. The ordered aircraft are types of A320 and A321.[16]
Lion Air established a full service airline with the name Batik Air, which started operating in 2013 using 737-900ER. Lion Air also signed a commitment with Boeing to order five Boeing 787 Dreamliner for this airline, and this made Lion Air the first Indonesian airline to order this type since Garuda Indonesia canceled its order for the 10 Dreamliners in 2010, and is expected to be sent in 2015.[17] The airline has also considered ordering wide-body aircraft Airbus A330, but chose to buy 787's.[18]
On 31 July 2015, Lion Air officially left INACA due to a mismatch with other members.[19]
In June 2016, Lion Group was removed from the list of blacklisted airlines to fly into the EU.[20]
During the COVID-19 pandemic in Indonesia, Lion Group suspended operations until 1 June. It suspended operations again on 5 June after finding few passengers could provide documents proving they were virus-free and have a business reason or family emergency requiring travel.[21] In July 2020, Lion Group announced that the airline will lay off 2,600 contract workers as demand continues to sharply decline.[22]
Lion Air’s loyalty scheme is centered on CabinClub, a platform-driven rewards program that emphasizes booking activity and transactional benefits rather than conventional frequent flyer miles or tier status.[23]
