P

rivately owned airline Lion Air said it would apply for a new Air Operator Certificate (AOC) for its new full-service carrier, which is planned to be launched in November 2012, because it will bear a different company name, an executive said Sunday.

“Lion Air has been committed to being a low-cost carrier and we already have a steady market. As we plan to expand our wings into becoming a full-service carrier, we should have a new airline, which will need a new AOC from the country’s civil aviation authority,” Lion Air’s director of general affairs, Edward Sirait, told The Jakarta Post over the phone.

He added that, in general, an airline cannot be both a low-cost carrier and full-service carrier at the same time.

“Law No. 1/2009 on Aviation also stipulates that one carrier should only choose one type of service,” Edward said. Lion Air decided to expand into the full-service domain because the company had predicted that the full-service market would see continual growth.

“At this moment, the national annual growth of airline passengers has reached 15 percent. We are sure that travelers who opt for full-service amenities will continue to grow as well,” Edward said.

Currently, Lion Air has one subsidiary, Wings Air, which serves as a feeder for Lion, linking its main destinations with secondary cities.

Separately, the Transportation Ministry’s air transportation director general, Herry Bakti Gumay, said that a new AOC was not a problem as long as the airline fulfills a series of requirements that new airlines must follow.

However, he indicated the expansion of Lion Air was to gain more profits in the future.

“Let’s take a look at Garuda Indonesia. The airline also has Citilink to provide low-cost services. I think Lion Air will try to compete with other airlines that provide dual types of service,” Herry said.

He added that in 2015, there would be an ASEAN Open Sky Policy, an international policy concept which calls for the opening of a free market for the airline industry.

“By creating a full-service airline, Lion Air will possibly be able to compete with the regional giants, such as Singapore Airlines and Malaysia Airlines,” Herry said.

Currently, Lion Air is mired with delayed flights due to tight schedules, and the ministry has ordered the airline to have a number of its airplanes on standby in case of delays.

Edward, however, was upbeat that the airline will be able to attract a large number of passengers who will opt for the full-service carrier.

“As of today, our on-time performance [OTP] has reached 80 percent. We are very sure of our plan,” he said.

He added that the new full-service airline would offer a huge surprise to customers, offering a totally different type of service compared to other airlines that already provide such services.

Edward, however, refused to elaborate on the planned fullservice system other than it would have in-flight meals.

Edward added that as a full-service carrier, the new airline will target business travelers and those from the upper echelons of society, as well as those people who merely prefer full-service rather than a low-cost one.

He also refused to reveal more information on how many pilots would be hired for the new airline.

Edward only said the new airline would use 12 Boeing 737-900ERs as a start-up.

Lion Air received its 50th 737-900ER on Saturday, with the total due to rise to 54 by the end of this year, and 178 by 2016.

“We are still calculating that. Much will depend on which routes we want to serve. We are still in the process of determining the destinations for our new airline,” he said.

He added that the full-service airline might possibly cover both the busiest and quieter airports, meaning both small and big cities. (fem)