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
aircraft to execute a long term business strategy. Naturally because the amount
of money invested was tremendously great.
This airline had previously even made an amazing breakthrough. Pursuant
to revised quota of air carrier’s flight 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 Rusdi Kirana, President Director of Lion Air,
by request of Nadjib Riphat, the Indonesian Ambassador to Australia. The
Indonesian Embassy had received many request for direct flight 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 ago [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 Denpasar-Perth,
Denpasar-Sydney, Denpasar-Melbourne, Jakarta-Sydney and Denpasar-Melbourne.
Meanwhile on the Indonesia side, Air Asia serves Denpasar-Perth.
Meanwhile on the Australia side, Qantas serve Sydney Jakarta, Qantas
core-sharing with Jetsar serve Sydney-Denpasar, Melbourne-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 27,500 passengers per week each
week for Sydney-Perth, Brisbane-Melbourne.
The agreement was signed between Indonesia Minister of Transportation EE
Mangindaan and the Minister of Infra Structure and Transportation of Australia
Anthony Albanese. The number of passenger 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 aircraft 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. Last 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 sit 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 Indonesia 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 Changi Airport. With services rendered per January 9
2013 last, passengers could enjoy various facilities of Changi 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 Changi 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 Changi airport. Passengers on
transit of 2-3 hours could enjoy free internet service or play in some parks at
Changi airport or they could shop at the hundreds of shops at Changi airport.
Meanwhile for passengers on transit for 5 hours or more could have a joy
ride in tourist bus operating at Changi 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 happened. (SS)
Business News - February 22,2013
No comments:
Post a Comment