Lion Group Controls 60% of Domestic Aviation Market

Investor Daily
November 26, 2022 | 8:12 pm
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A number of aircraft operated by Lion Group are seen at Soekarno Hatta Airport apron in Tangerang, Banten. (Antara photo)
A number of aircraft operated by Lion Group are seen at Soekarno Hatta Airport apron in Tangerang, Banten. (Antara photo)

Jakarta. Three airlines under Lion Group controlled 60 percent of the domestic market share, almost twice the share of flag carrier Garuda Indonesia throughout last year, according to a recent report by the Indonesia National Air Carriers Association (INACA).

The total number of domestic air passengers stood at 33.4 million last year, the lowest in more than a decade due to Covid-19 travel restrictions.

Parent company Lion Air transported 9.89 million passengers last year, accounting for 30 percent of the overall domestic air passenger traffic and putting it at the top of the domestic competition. 

Subsidiaries Batik Air and Wings Air carried 7.26 million passengers (22 percent) and 2.62 million passengers (8 percent) respectively, bringing the group’s total market share to 60 percent.

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The number of domestic passengers flown by Garuda totaled 3.49 million or 10 percent of last year’s domestic volume. Garuda’s budget carrier Citilink outperformed the parent company by transporting 7.52 million passengers, equivalent to 23 percent of the market share. The two combined grabbed 33 percent of the market share.

The remaining shares were distributed by other airlines such as Sriwijaya Air (1.11 million passengers), Indonesia AirAsia (637,450), Nam Air (292,410), Trigana (120,730), and Susi Air (9,460). Airlines not a member of INACA transported a total of 398,480 passengers.

But Garuda controlled 58 percent of the market share for international flights or around 106,800 passengers; followed by Indonesia Air Asia with 69,890 passengers or 38 percent, Lion Air (7,370 passengers, 4 percent), and Citilink (778 passengers, 0.4 percent).

Air passenger traffic has picked up growth domestically and internationally since early this year. The total number of domestic air passengers has reached 37.5 million as of September, already surpassing the 2021 figures, according to data from the Transportation Ministry.

Meanwhile, the total number of international air passengers in Indonesia also jumped to 6.1 million over the same period.

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