AviationWith 17 new flight routes across Indonesia, is Lion Group boosting tourism or maintaining its lion's share in the skies?

Lion Group expanding skies but price tags still roar

By Rin Hindryati

Feb 28, 2025

There are concerns over Lion Group’s high ticket prices, with some questioning whether the new routes are truly benefiting the tourism sector. Photo Credit: Ministry of Tourism

Lion Air and Wings Air, both part of the Lion Group, have launched 17 new domestic routes, mainly in eastern Indonesia. Lion Air introduces four new routes from Palangkaraya (Central Kalimantan) to Makassar, Bali, and Lombok, and a route from Manado (North Sulawesi) to Bali. These routes will be operated with Boeing 737-800NG and 737-900ER aircraft, starting on 21 and 22 March 2025 respectively.

Wings Air connect the dots in Eastern Indonesia

Wings Air has launched several routes, including from Kendari (Southeast Sulawesi) to Wakatobi and Morowali, from Makassar to Poso, Selayar, and Raha (Muna Island), and from Palu to Gorontalo and Ampana. Other new routes connect Balikpapan to Tanjung Selor and Ternate to Maba. These routes will be operated using ATR 72 aircraft, designed for short- and medium-haul flights.

Indonesia’s Ministry of Tourism (Kemenpar) welcomed the new routes, seeing them as a way to strengthen air connectivity and boost tourist mobility. Deputy Tourism Minister Ni Made Ayu Marthini stated, "These flights are expected to attract more tourists, both international and domestic. Connectivity is key to increasing the number of tourist visits." She added that Makassar is a gateway to Eastern Indonesia, and the new routes will ease travel for both tourists and businesspeople.

Concerns over high ticket prices

However, some travel agents question the impact on tourism, citing high ticket prices. "They may mainly serve cargo or trading," said one agent. A source also suggested that the new routes are aimed at maintaining the Lion Group’s dominance. Data from the Indonesia National Air Carriers Association (INACA) shows Lion Group holds a 62% market share.

Pauline Suharno, shairman of the Indonesian Travel Agent Association (ASTINDO), agrees that while new routes improve connectivity, the high fares remain a challenge. "Wings Air tends to monopolise prices," she said. She pointed out high ticket prices on routes like Lombok to Sumbawa and suggested that reducing fares would better promote domestic tourism.

Panorama Group's AB Sadewa sees the new routes as beneficial for travel agents, providing more options for customers, though he noted that not all routes lead to major tourist destinations. "These routes aren't necessarily focused on tourism hotspots," he added.