State-run PT Merpati Nusantara Airlines will begin operating from its new headquarters in Makassar, South Sulawesi, on Monday hoping to provide better services for customers -- most of whom are from eastern Indonesia.
The airline's branch office manager, Supandi Ahmad Suwitno, told journalists on Sunday the airline would relocate 150 employees along with the company's property.
The relocation process was targeted to finish by October.
Merpati will use an old terminal of Hasanuddin International Airport outside Makassar and another office on Jl. Swadaya in Makassar as its board of directors' office and the airline's lodgings.
"In the meantime, only the board of directors and staff will be based in Makassar while other employees will relocate later," Supandi said.
"We expect by October all employees and equipment will have arrived in Makassar so the head office will be fully operational *by then*."
Supandi added that the airline had allocated Rp 10 billion (US$1.08 million) for the relocation.
More than 70 percent of Merpati's 130 flights per day were in Eastern Indonesia, he said.
Flights from Makassar to other destinations in the region have a load factor of more than 90 percent and could reach 100 percent.
The move also aimed at improving Merpati's business performance and to gain more profit after the government targeted positive cash flow between August and October.
Supandi said President Susilo Bambang Yudhoyono hoped Merpati could open logistic routes to remote areas for both business and development purposes.
Merpati brand and marketing communication manager Widodo Aryanto said with the relocation Merpati would change its business strategy from opening new routes to becoming a feeder for other airlines using the operational cooperation (KSO) agreement scheme.
"Operational cooperation agreements can be made with regional administrations, the private sector or individuals," Widodo said.
Currently, Merpati has 13 routes deemed potentially profitable for the airline under the KSO scheme including those to Merauke, Papua; Bau-bau, Southeast Sulawesi; East Nusa Tenggara; Bima, West Nusa Tenggara; and Mamuju, West Sulawesi.
The KSO scheme utilizes investment and subsidies.
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