On Tuesday, September 11, 2012, Malaysian Prime Minister Datuk Seri Najib Tun Razak announced the formation of a new low-cost airline called Malindo Airways. The airline is a joint venture between Malaysia’s National Aerospace and Defence Industries and Indonesia’s Lion Air Group.

The airline will be based at the up-coming KLIA 2 terminal outside Kuala Lumpur and is expected to begin operations on May 1, 2013. The airline will initially fly routes between Malaysia and Indonesia, later expanding to destinations across Asia.

Malindo Airways will operate a fleet of Boeing 737-900ER aircraft in a two-class configuration. There will be 12 business class seats and 168 economy class seats. All customers will enjoy a personal entertainment system, in-flight WiFi, and a light meal.

The airline’s name is a fusion of the names of the two supporting countries – Malaysia and Indonesia.

Ticket prices are expected to be on par with or even lower than AirAsia, Malaysia’s current leading budget airline.