Lion Air: Passenger numbers fell less than 5 percent after deadly crash

The cause of the Oct. 29 crash into the Java Sea has yet to be determined. (File/AFP)
Updated 10 December 2018
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Lion Air: Passenger numbers fell less than 5 percent after deadly crash

  • “It was under 5 percent compared to the traffic at the same month last year,” said Lion Air CEO on November passenger numbers
  • He said Lion Air did not “clearly understand” whether the crash was responsible for the fall in traffic in November

JAKARTA: Lion Air said on Monday passenger numbers dropped by less than 5 percent in November compared to a year earlier, after one of its Boeing Co. 737 MAX jets crashed in late October killing all 189 people on board.
“There was a decline but it wasn’t too significant,” the airline’s CEO Edward Sirait told television network CNN Indonesia. “It was under 5 percent compared to the traffic at the same month last year.”
He said Lion Air did not “clearly understand” whether the crash was responsible for the fall in traffic in November, which he said was a low season for travel.
The airline, Indonesia’s largest, is privately owned and does not publicly release traffic statistics or financial results.
Sirait said last week Lion Air was considering canceling orders for 737 MAX jets but it had not yet made a decision.
Sources told Reuters that relations between the airline and Boeing had worsened in a spat over responsibility for the crash.
The airline has 190 Boeing jets worth $22 billion at list prices waiting to be delivered, on top of 197 already taken, making it one of the largest US export customers.
Bankers and some analysts say Lion Air and Southeast Asian rivals over-expanded and would be comfortable with fewer orders.
Boeing has declined to comment on contractual matters but industry sources say aerospace companies rarely leave room for unilateral cancelations except in exceptional circumstances.
The cause of the Oct. 29 crash into the Java Sea has yet to be determined.


Hyundai invests $300 million to help India’s Ola battle Uber

Ola was launched in 2011 and is engaged in an aggressive battle with Uber in India’s ride-hailing market. (Reuters)
Updated 19 March 2019
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Hyundai invests $300 million to help India’s Ola battle Uber

  • Ola was launched in 2011 and is engaged in an aggressive battle with Uber in India’s ride-hailing market
  • Ola says it handles around a billion rides a year across India’s major centers

MUMBAI: Indian taxi-hailing company Ola has secured a $300-million investment from South Korean car giant Hyundai, the firms said Tuesday, providing a major boost in its fight against US giant Uber.
Ola was launched in 2011 and is engaged in an aggressive battle with Uber in India’s ride-hailing market, which is estimated to be worth around $10 billion and growing fast.
The new money, from Hyundai’s subsidiary Kia Motors, will largely be used to help Ola increase its electric vehicle fleet, the companies said in a joint statement.
“Our partnership with Ola will certainly accelerate our efforts to transform into a smart mobility solutions provider,” Hyundai executive vice chairman Chung Eui-sun said in the statement.
Bangalore-based Ola announced last year that it planned to put a million electric vehicles on India roads by 2021.
Ride-hailing apps are booming in the country despite stiff opposition from traditional taxi firms and some initial concerns about passenger safety.
Ola says it handles around a billion rides a year across India’s major centers, as well as seven cities in Australia.
In 2018, Ola also announced operations in Britain as part of a drive into other markets as competition with Uber intensifies on home turf.