Indonesian airline giant PT Lion Mentari Airlines (Lion Air) is currently negotiating a joint operation with a Vietnamese partner, and signed a memorandum of understanding recently in Jakarta, said Edward Sirait, President Director at Lion Air.
According to the memorandum, the joint venture will be called Batik Air in Viet Nam.
Lion Air will hold a 49 percent stake of the joint venture, while their Vietnamese partner will hold the remaining 51 percent. Plans for the joint operation are expected to be completed in the second quarter of 2017.
In 2014, Lion Air initially sought to establish a new airline in Australia, in which the company would hold 100 percent of the shares. However, Lion Air’s co-founder, Rusdi Kirana, stated that this plan was delayed because the airline decided to expand their operation in the ASEAN market.
Lion Air is based in Jakarta, Indonesia and is the country’s largest private airline, operating as a low-cost carrier and the second largest low-cost airline in Southeast Asia, after AirAsia.