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Airline passengers to increase by 15%

The Transportation Ministry has forecast that the number of airline passengers will increase by 15 percent next year, spurred by robust economic growth, new carriers and expansion of existing operators

The Jakarta Post
Jakarta
Sat, November 12, 2011

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Airline passengers to increase by 15%

T

he Transportation Ministry has forecast that the number of airline passengers will increase by 15 percent next year, spurred by robust economic growth, new carriers and expansion of existing operators.

“There are 60 million passengers as of today and we predict a 15 percent increase next year on higher economic growth,” said the ministry’s air transportation director general Herry Bhakti Gumay on Friday.

Herry was upbeat that the economic slowdown in Europe and in the US would not impact Indonesia because most of the airline passengers were domestic travelers.

Aside from the robust economy, the increase in passengers next year, according to Herry, would also be triggered by the arrival of new players and expansion plans by the existing operators.

Among them is Pacific Royale, a full service airline that obtained a flight business permit from the ministry this month.

Pacific Royale is currently in the process of applying for an Air Operator Certificate (AOC). “The airline will be flying after they fulfil all the procedures,” Herry said.

The airline operates 10 aircraft: five Fokker 50s and five Airbus A320s, according to the ministry.

“We will also see an expansion of local heavyweights to tap the growing demand of passengers,” said Herry.

National flag carrier Garuda Indonesia is currently in the process of expanding its fleet from the current 87 aircraft to 153 by 2015. The new aircraft will include the Boeing 737-800NG and the 777-300ER, as well as the Airbus A330-200.

Garuda’s low cost carrier Citilink, which has 10 aircraft, will add five to 10 Airbus A330-200 aircraft in 2012.

Privately owned Lion Air will receive its 54th 737-900ER by the end of this year and 12 more 900ER aircraft next year.

In addition, Lion will apply for a new air operator certificate for its new full-service carrier, which is to be launched in November 2012 under a new company name.

Its new subsidiary, Space Air, will be based in Jakarta and fly domestic routes before expanding to regional destinations.

Space Air will operate Boeing 737-900ER aircraft, but the cabin configuration has not been decided.

Another privately owned airline, Sriwijaya Air, which currently has a fleet of 30 aircraft consisting of Boeing 737-200s and the 737-300/400/500 Classic Series, plans to replace its aging 200 series aircraft with Boeing 737-800 NGs and Embraer E-190s next year to expand Sriwijaya’s network.

Its first Boeing 737-800 will arrive in September 2012, while its first Embraer E190 arrives in August 2012.

The airline has ordered 20 of each type of aircraft.

Mandala Airlines will begin flying again next year as soon as they are ready, according to Herry.

Its owner, Saratoga Group, had previously said that the firm and its partner, Singapore budget airline Tiger Airways, would operate a fleet of 10 aircraft – five new purchases and five leased planes, in order to comply with the transportation ministry’s regulation requiring airlines to have at least 10 aircraft to operate. (nfo)

Key points of the 2009 Aviation Law that have not been implemented

• Article 118 (f) Airlines must report their monthly performance, including flight delays and cancellations to Transportation Ministry at the latest 10 days after a month ends.

Article 118 (g) Airlines must submit their audited annual financial report to Transportation Ministry before May of the next year.

• Article 271 The Transportation Ministry must establish a non-profit oriented, financially independent institution to manage flight navigation services before January 2012.

• Article 357 President must establish before January 2011 a national committee to independently run investigations and studies of air accidents and produce final report and recommendations for the government to prevent similar accidents from occurring.

• Article 364 Once established, the national committee must form a professional aviation council to help them run advanced investigations, enforce a professional ethics code and interpret aviation-related laws.

• Article 381 The government is responsible for providing an adequate number of human resources in aviation sector.

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