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ational flag carrier Garuda Indonesia will expand its business on short-range and high-density domestic routes this year after receiving the Bombardier aircraft in September.

The airline’s sales and marketing director, Arif Wibowo, said that the sub-100 Bombardier CRJ1000 NextGen aircraft would be used to serve its regional hubs in Medan, North Sumatra; Balikpapan, East Kalimantan; and Makassar, South Sulawesi.

“The aircraft will help increase the connectivity of towns around these three hubs, such as Medan –Palembang, Balikpapan – Pontianak, and Makassar – Kupang,” he said.

The company signed a contract to purchase 18 Bombardier jets at the Singapore Airshow in February with an option to buy a further 18.

They will receive the delivery of five sub-100 jets between September and December and they will start operating the short-range routes in October.

The short-range routes that Garuda will enter this year have been the domain of Merpati Nusantara Airlines for years, especially in the eastern part of Indonesia.

Contacted separately, Merpati president director Capt. Sardjono Jhony said the airline was ready to compete with any airline in the country, including Garuda.

“Merpati will fly higher and healthier during the next two years. Just give us time,” Sardjono said.

According to figures from the State-Owned Enterprises Ministry, Merpati’s unaudited financial report showed that it suffered a net loss of Rp 778.65 billion in 2011. The data also showed that Merpati reaped Rp 1.61 trillion in revenue last year. The airlines’ total assets were Rp 3.44 trillion.

Merpati bought 40 100-seat ARJ21-700 jets from China and will begin receiving the jets next year.

The airline will also receive 8 Boeing 737 aircraft this year, increasing their B-737 fleet to 17, enabling them to increase flight frequencies as well as to open new routes.

The Transportation Ministry’s air transportation director general, Herry Bhakti Gumay, said the ministry was currently studying the proposed Garuda routes that were also serviced by Merpati.

“We are still studying their proposal and we see that the competition is now becoming tighter on the short-range routes,” he said.

 He said that as a regulator, the ministry had the right to limit Garuda’s routes if it could hurt the business of another airline, including Merpati.

“But, I think Merpati is safe because both airlines cater to different markets,” he said.

Merpati has been the regulator’s partner for years in flying pioneer routes and helping to develop remote regions.

This year, for instance, they have secured more than 40 routes in Central Sulawesi, East Nusa Tenggara and Papua with government subsidies worth Rp 70 billion (US$7.63 million). (nfo)