Lion Air to commerce flights to S'pore

Lion Air to commerce flights to S'pore

Deutsche Press-Agentur, Singapore

The race among budget airlines to fly to Singapore is heating up
with a third player, Jakarta-based Lion Air, joining the fray, a
spokesman said on Wednesday.

"Singapore is a very important market for us," Lion Air
spokesman Hasyim Arsal told the daily newspaper Streats.

"We believe both Singaporeans and Indonesians will benefit
from Lion Air's connectivity within Indonesia," he was quoted as
saying.

Lion Air is set to fly four times daily to Changi starting
Nov. 14, likely charging S$90 (US$62) for a round-trip ticket or
at least 30 percent less than other airlines plying the Jakarta-
Singapore route.

Many Indonesians currently fly to the island of Batam and then
take the ferry to Singapore to save on direct airfares, Arsal
said.

Lion Air was started by Indonesian businessman Rusdi Kirana in
June 2000 following the deregulation of Indonesia's aviation
industry.

Singapore will be the second international destination for
Lion Air, which already flies four times daily from Jakarta to
Kuala Lumpur.

Valuair, a no-frills carrier started by a former Singapore
Airlines (SIA) executive, plans to take off in the second quarter
of next year with short-haul flights from Changi Airport.

Arsal said that Lion Air is similar to Malaysia's AirAsia in
that "we're low-fare, but we're a full service airline."

AirAsia, founded less than two years ago, starts flying twice
daily between nearby Johor Baru and Kuala Lumpur starting Oct.
22.

With Changi Airport regarded as too expensive, AirAsia chief
Tony Fernandes said the airline may consider using the small
Seletar Airport instead.

Singapore Airlines (SIA) rejected last week a partnership with
Thailand to set up a no-frills carrier based in the northern Thai
city of Chiang Mai.

The flag carrier has not ruled out setting up its own budget
carrier based in Singapore. A decision is expected before the end
of the year.