Airlines use gimmicks to lure more passengers<\/p>\n
By I. Christianto<\/p>\n
JAKARTA (JP): Several overseas airlines serving Indonesia have
\nlaunched gimmicks ranging from price discounts to special
\npackages to attract passengers in the dwindling market.<\/p>\n
EVA Air, Singapore Airlines, Air France, Qantas and Ansett,
\nfor example, have cut their fares by some 50 percent in
\nparticular periods.<\/p>\n
British Airways, German Lufthansa and KLM of the Netherlands
\nrefused to comment on their latest fares but analysts say they
\nwill have to follow the trend if they want to survive.<\/p>\n
EVA Air spokeswoman, Diana Mawarsari, told The Jakarta Post
\nover the weekend that the airline had offered for the first time
\nnew tickets with special prices to the United States with one-
\nmonth or six-month validity periods.<\/p>\n
The price could be up to or more than 20 percent lower than
\nnormal rates, she added.<\/p>\n
"We also offered special rates for tour groups and individual
\ntravelers from Nov. 1 to Dec. 12. This was quite helpful to
\nencourage more passengers to choose our flights."<\/p>\n
She said that during the Sept. 15 to Dec. 12 period there were
\nalso special packages to Los Angeles for a group of at least 10
\nmembers for just $999, much cheaper than the original fare of
\n$1,099.<\/p>\n
EVA Air will operate an additional flight linking Kaohsiung
\nand Jakarta beginning Jan. 1, 1998.<\/p>\n
Top executive of Air France in Indonesia, Christian Herpin,
\nsaid that Air France had also launched special rates.<\/p>\n
"To serve our clientele and to keep our market, we offer
\nreduced fares to Europe," he said, adding that starting early
\nlast month until mid this month, individual travelers could fly
\nAir France from Jakarta to a destination in Western Europe for
\njust US$900 instead of the normal rate of $1,450.<\/p>\n
The fall in the rupiah's value of about 40 percent since early
\nJuly has made overseas traveling more expensive for Indonesians.<\/p>\n
But this is not the only reason for the dwindling air
\ntransport business in the country.<\/p>\n
The haze problem, which recently blanketed most parts of
\nKalimantan, Sumatra and neighboring Singapore and Malaysia has
\nalso contributed to the fall in the number of inbound passengers.<\/p>\n
Foreign tourists fear that the choking haze is still affecting
\nair traffic and tourist resorts.<\/p>\n
Top executive of Cathay Pacific in Indonesia, Clement Lam,
\nagreed that the financial crisis and haze problem had affected
\nbusiness.<\/p>\n
Tan Chick Quee, the top executive of Singapore Airlines in
\nIndonesia, agreed.<\/p>\n
"The situation is unstable and we should keep our heads so as
\nnot to lose confidence, and avoid taking steps that would have
\nlong term impact," he said.<\/p>\n
Singapore Airlines offered a $900 Jakarta to London flight
\ninstead of the normal $1,425 fare.<\/p>\n
Cathay Pacific has just introduced a fare of $666 for two
\npeople to Hong Kong, instead of the normal rate of $600 per
\nperson.<\/p>\n
The cuts in fares launched by the Asian and European airlines
\nprovoked Australia's airlines to follow suit. Although Ansett
\nInternational and Qantas say they have not been seriously
\naffected by the currency crisis.<\/p>\n
Con Korfiatis of Ansett and Ronny Mampouw of Qantas said their
\nairlines cut the price of a Jakarta-Sydney-Jakarta ticket from
\nabout $600 to $700 to only $350 effective only in November.<\/p>\n
Most of the gimmicks launched by the Asian, Australian and
\nEuropean air carriers will end mid this month because December is
\nusually a peak season.<\/p>\n
The international air carriers admitted that the ongoing
\ncurrency turmoil had affected their revenues due to the
\ndecreasing number of passengers in recent months.<\/p>\n
They said that situation in Indonesia in 1998 would greatly
\ndepend on the stability of rupiah.<\/p>\n
"Our load factors reached 80 percent and 75 percent in the
\nJakarta and Surabaya outbound services respectively in August
\n1997, much higher than 65 percent and 60 percent respectively in
\nAugust last year," Diana said.<\/p>\n
"But the figures dropped to 60 percent on average in September
\n1997, much less than 68 percent (Jakarta) and 70 percent
\n(Surabaya) in September 1996."<\/p>\n
The Taiwan-based EVA Air currently links Indonesia (Jakarta
\nand Surabaya) and Taiwan (Kaohsiung and Taipei) 10 times per
\nweek.<\/p>\n
Diana said that the October load factor figures dropped to 45
\npercent in Jakarta and 40 percent in Surabaya, while in October
\n1996 the load factor was 70 percent on average.<\/p>\n
The economic slowdown has affected air transportation
\nthroughout the Asia Pacific region, which claims the strongest
\nair traffic growth rates in the world -- over 7 percent per
\nannum.<\/p>\n
Herpin told the Post that Air France had also seen fewer
\npassengers flying from Indonesia to Europe.<\/p>\n
Ansett and Qantas have seen stable load factors.<\/p>\n
"In the last three months the outbound passengers to Australia
\nwere relatively okay," Korfiatis of Ansett said.<\/p>\n
He said that total of passengers flying from Indonesia to
\nAustralia by Ansett during the January to October period this
\nyear was up 11.7 percent over the same period last year.<\/p>\n
Ansett's total passengers from Australia to Indonesia during
\nthe January-October period this year was up 9 percent over the
\nsame period last year, he added.<\/p>\n
"Because Australia is quite close to Indonesia, meaning the
\nairfares are not as expensive as rates to Europe or the U.S.," he
\nsaid.<\/p>",
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