Indonesian low-cost carrier Lion Air has applied to the country's transport ministry set up a full service subsidiary.

The airline hopes to receive an air operator's certificate (AOC) in time to start its services by the end of 2012, said Edward Sirait, Lion Air's general affairs director. The name of the new carrier will be decided later, Sirait added.

The new subsidiary will be based in Jakarta and will fly on domestic routes before expanding to regional destinations.

Its flights will be operated on Boeing 737-900ERs and the cabin configuration has not been decided, Sirait said. The airline has 50 737-900ERs in service and another 118 on order.

Separately, Lion Air launched a daily Jakarta-Lampung service on 23 August and will operate 737-300s, 737-400s and the -900ERs on the route.

It will also launch a daily Jakarta-Tanjung Pinang service on 23 September using the -300s and -400s, Sirait said.

Source: Air Transport Intelligence news