Is Lion allowed to fly in Europe?

 

As far as I know, they still are not. They are starting a new airline called Batik Air on long haul routes using the 787. That will need certification from the EU if they want to fly there.

Another irony, NO, they aren't allowed in EU.

With the quantity of 737's and A320's they are purchasing their interests are going to be limited to the Asia, Australia and New Zealand markets, the 4 787's will most likely focus on USA/Canada, Dubai and the Middle East. This is a big market for them without even going to Europe.