The Management of Lion .Air,
a national airline company was continuously running expansive business
strategy. The latest news had it that this national airline planned to operate
1.000 units of commercial air crafts, a no-fooling number of aircrafts to
execute a long term business strategy. Naturally because the amount of money
invested was tremendously greet.
This airline had previously
even make an amazing breakthrough. Pursuant to revised quote of air carrier's
right between Indonesia and Australia, Lion Air even stated their readiness to
serve some routes between the two countries. Lion Air was even ready to serve
two prospective routes, i.e. Kupang-Darwin and Adelaide – Denpasar.
The news was disclosed by
Ruedi Kirarie, President Director of Lion Air, by request of Nadjib Rliphat,
the Indonesian Ambassador to Australia. The Indonesian Embassy had received
many request for direct fight service between some cities in Australia to
Denpasar from various circles in Adelaide. Such was statement of the number one
man in Lion Air to the press not long ego (7/2).
Today the carrying capacity
used by Indonesia was 12,000 passengers while Australia had used 17,000
passengers per week. The Airline serving Indonesia-Australia route was PT Garuda
Indonesia serving Denpaser-Perth, Denpasar-Sydney, Denpasar-Melbourne, Jakarta-Sydney
and Denpasar-Melbourne. Meanwhile on the Indonesia side, Air Asia serve Denpasar-Perth.
Meanwhile on the Australia
side, Qantas serve Sydney Jakarta, Qantas core-sharing with Jetsar serve Sydney-Denpasar,
Malboume-Denpasar and Perth-Denpasar. Meanwhile Vigin Australia airline serve Adelaide
Denpasar.
As released before, the Government of RI and Australia had agreed on revision of passengers quota rights through Air Service Agreement. Hence the airlines of both countries could carry up to 27,540 passengers per week each week for Sydney-Perth, Brisbane and Melbourne.
The agreement was signed between Indonesian Minister of Transportation EE Mangindaan and the Minister of infra Structure and Transportation
of Australia Anthony Albanese. The number of passengers between the two countries had been increasing, therefore the Air Agreement needed revision. This was stated by the Indonesian Minister of
Transportation EE Mangindaan.
In regard to Lion Air's expansion plan to operate 1,000 aircrafts, this was a big plan worthy of appreciation. The intention was based on increasing market demand and the ambition to command over domestic
routes plus Asia.
To realize the plan Lion Air had ordered 468 units of aircrafts from Boeing and ATR. By 2026 all the ordered aircrafts would have come. This company was still processing purchases
of new aircrafts to complete the 1,000 unit of
aircrafts needed in Lion Air Group.
The company saw that the number of air passengers in Indonesia
kept growing each year. Lest year Lion Air carried 32 million passengers (around
50%) of the total domestic passengers which numbered 65 million passengers. To
command over the market in ASEAN, Lion Air admitted they had collaborated with
a company in Malaysia to set up airline in Malaysia by the name of Malindo
Airways, which would start operation next March.
The bright prospect of
commercial airline business in Indonesia attracted an airline called Tiger
Airways in Singapore which planned to open new routes in Indonesia by 2013.
According to the management of Tiger Airways, the two new routes planned for
operation was Singapore-Bandung, Singapore-Semarang and vice versa.
The reason for opening new
air routes was to serve business activities and tourism which was planned for
before mid year 2013. Indonesia is the most potential market for Tiger Singapore.
Therefore this year target was set to increase air schedules to Indonesia and
from Indonesia to Singapore.
The areas to serve as
destinations were Sumatra and Java such as Jakarta, Surabaya and Medan; whilst
for East Indonesia. beside Bali, which was already served, more cities would be
probed as destinations.
Tiger Airline passengers of
Indonesian origin not only look at Singapore as final destination, many of them
used Singapore as transit city before continuing journey to other countries.
After opening of the Tiger connection service it would soon serve as
connectivity route without hindrances for passengers arriving at Changgi Airport.
With services rend areal per January 9 2013 last, passengers could enjoy
various facilities of Changgi Airport during transit time.
Passengers who benefited
from Tiger Connection did not have to pass through immigration procedures or
register for Singapore travel visa and needed not to take luggage. Since launching,
more than 30,000 passengers had benefited from Tiger Connection services and it
was expected that 50.000 passengers would follow before mid-year.
From Indonesia's viewpoint,
Tiger Connect was expected to increase arrivals of overseas passengers under
Tiger Airline service to fly to Indonesia. In fact many overseas passengers had
benefited from the service, especially from Perth, Australia. While waiting on
transit, they could enjoy various facilities and services at Changgi airport.
To enjoy the services, passengers
would be charged cost of 16 Singapore dollars provided reservations were based
on on-line service at Tiger Airways site and SIN$ 20 if reservations were made
at Changgi airport. Passengers on transit of 2-3 hours could enjoy free
internet service or play in soma parks at Changgi airport or they could shop at
the hundreds of shops at Chancigi airport.
Meanwhile for passengers on
transit for 5 hours or more could have a joy ride in tourist bus operating at
Changgi airport for sightseeing in Singapore City for free.
From the above picture it
might be concluded that the prospect of commercial airline industry was good.
The need of the general public, especially those who use to travel by air, was
the main consideration. Economic growth in all of Indonesia means potential
opening of new air route services.
Indonesia's economic growth
of above 6% in the past 3 years underscored the fact that economic heartbeat was
spreading out not just centered in Java. Sumatra and Sulawesi are two big
islands of energetic economy centers with dynamic heartbeat thanks to the
abundant natural resources supported by constant infra-structure development.
Soon East Indonesia region would
be the target of new air route opening in line with the invigorated economy in
that region.
The ever bettered
connectivity was triggered by the increasing commotion of people who needed to
move fast. Today more and more people could afford to travel by air this
purchasing power was the fruits of economic growth.
The emerging middle class,
the term used for the high income group in Indonesia was growing well and such
was a promising market potential. Such was the ground for local and regional
airline operators to spread their wings in airline business. Now to travel by
air was no longer a terrier need but had become primary need for certain
segment of customers in Indonesia.
So if there was any airline
which constantly lose business or even go bankrupt, they deserved to be
questioned why it could happen.
Business News - February 22,2013
No comments:
Post a Comment