Jakarta to the island of Bangka, east of Sumatra. Waiting for the black box already located to shed light on the causes of sinie The company itself has recognized that the plane, a Boeing 737 MAX 8 released in August and with only 800 hours of flight, had a “technical problem” the day before. Although in theory it had been solved, the device crashed on the next trip. Suspecting negligence, the Indonesian Ministry of Transportation has suspended the Lion Air technical director and the engineer who checked the aircraft. Recurrent Problems Unfortunately, it is not the first time that such a problem has shaken this company, that in less than two decades has led the Indonesian air market thanks to its aggressive expansion policy and its low prices. Founded in 1999 by the brothers Pro Forma Template and Kusnan Kirana with 900,000 dollars (787,000 euros) and a single plane, the Lion Group has grown by opening subsidiaries such as Wings Air and Batik Air, as well as Thai Lion Air in Thailand and Malindo Air in Malaysia.
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“We have a population of 250 million people and 17,000 islands with 8,000 kilometers in a straight line from east to west, but few seats available compared to other Asian countries.
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We still have a huge margin to grow, “Rusdi Kirana told the magazine” Forbes “in 2015. Demonstrating his ambition, Kirana has broken two world records of airplane purchases. In 2011, and taking advantage of President Obama’s visit to Bali, he commissioned 230 Boeing 737, with an option of another 150, for some 22,000 million dollars (19,242 million euros).
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Only two years later, he signed an order for 234 Airbus A320 worth 24,000 million dollars (20,100 million euros) in the Elysee Palace, with the French president, François Hollande, as godfather. Become the second largest customer of Boeing, has acquired another 50 737 MAX 10, which cost 6,240 million dollars (5,457 million euros).
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With 25,000 employees, of which 3,500 are part of the crews of the aircraft and a thousand are engineers, Lion Air flies to more than 120 destinations, some international like Singapore, the Philippines, Thailand, Malaysia, China, India and Australia.
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In April 2013, a newly launched Boeing 737-800 ended up floating in the sea as it passed the runway while it landed at the Bali airport. Miraculously, its 108 occupants survived and there were no serious injuries, but it was the seventh Lion Air accident since 2002. Even more scandalous was the arrest in 2012 of several pilots who tested positive for methamphetamine, a stimulant drug.
With more than 40 million passengers and revenues of more than 1,600 million dollars (1,400 million euros), the Lion Group in 2015 took half of the air market in Indonesia, well ahead of the state airline Pro Forma Template and its subsidiaries, that added 37%. Under the slogan “We make people fly,” the company has benefited from the economic growth of the gigantic Indonesian archipelago by lowering costs.