Indonesian low-cost carrier Lion Air is to partner with Malaysia’s minority state-owned National Aerospace and Defence Industries (NADI) to establish a new carrier.

The start-up, named Malindo Airways, will be 51 per cent controlled by NADI and 49 per cent by Lion Air and will operate as a hybrid airline.

The offering will be low-fare, but with ‘frills’ including free in-flight entertainment, a light meal and WiFi connectivity. 

It will also use airbridge facilities at the airports that have them, confirmed an airline source.

Malindo Airways intends to launch operations from a primary hub at Kuala Lumpur International Airport and will be based at the new KLIA2 budget terminal which is due to become operational in April 2013. 

The airline will initially serve a mix of domestic markets and to locations in Indonesia from May 1st, 2013 before expanding to introduce new non-stop links from Kuala Lumpur to markets across Asia, including China, Thailand, Vietnam and the Philippines.