Tiger Air

Tiger Air / LCC: Competition heats up for Tiger Air and Air Asia, as Lion Air announced that it has signed a contract to order a record 234 single-aisle passenger planes from Airbus in a deal worth US$24b, which is the biggest for Airbus in terms of the number of aircraft and the overall sum. The contract for the A320 planes trumped that between Lion Air and Boeing in 2011 for 201 planes worth US$22bil. Lion Air has been rapidly growing its fleet to meet the need for medium-haul jets servicing the growing aviation market in Indonesia, the world's fourth most populous country. With both mega-purchases in place, Lion Air would boast more than 600 aircraft by 2025, making it among the top 10 of the world's biggest airlines in terms of fleet size. Caution however that execution for such a massive expansion would be the ‘Key Risk’ here for Lion Air.