Domestic airlines expected to face stiff competition<\/p>\n
By I. Christianto<\/p>\n
JAKARTA (JP): Domestic airlines have to prepare themselves for
\nstiffer competition with foreign airlines as the government has
\ninvited foreign airlines to serve more destinations in the country in
\nanticipation of heavy tourism by 2005.<\/p>\n
Chairman of the Indonesian National Air Carriers Association,
\nSoelarto Hadisoemarto, told The Jakarta Post last week that as
\ncompared with foreign airlines, domestic airlines had two major
\nweaknesses -- the low rate of on-time schedules and the operation
\nof aging fleets.<\/p>\n
\"On-time schedules are related to management. Many overseas
\nairlines have successfully limited the rate of delayed and
\ncanceled flights. We also know that foreign airlines generally
\noperate new aircraft,\" he said.<\/p>\n
Since there will be many foreign airlines serving new
\ndestinations in Indonesia, domestic airlines would lose their
\nmarket, he added.<\/p>\n
Ansett of Australia, for instance, just started last week its
\nnew service linking Sydney and Jakarta after serving Denpasar in
\nBali since September 1993. Ansett plans to fly to Jakarta four
\ntimes a week as part of its international expansion program,
\nusing Boeing 767-300 aircraft.<\/p>\n
KLM of the Netherlands, British Airways, Germany's Lufthansa
\nand Japan Airlines have also been invited to serve more
\ndestinations in Indonesia.<\/p>\n
Meanwhile, one of the foreign airlines planning to fly to
\nIndonesia is Japan Air System, which is scheduled in April to
\nlink Nagoya in Japan and Manado in North Sulawesi and Denpasar.<\/p>\n
Director General of Air Transportation Zainuddin Sikado said
\nrecently that he would meet in March and April with his
\ncounterpart from Hong Kong to discuss the plan of Dragon Air of
\nHong Kong to serve Indonesia.<\/p>\n
\"Based on a bilateral agreement with Hong Kong, Sempati and
\nMerpati of Indonesia have been licensed to serve Hong Kong,\" he
\nsaid.<\/p>\n
The Hong Kong-Indonesia route is currently served by Cathay
\nPacific of Hong Kong and Garuda Indonesia.<\/p>\n
Sikado also said that Asiana of South Korea also plans to
\nserve Indonesia.<\/p>\n
There are six scheduled airlines in Indonesia: Sempati Air,
\nGaruda Indonesia, Merpati Nusantara Airlines, Mandala Airlines,
\nBouraq Airlines and Dirgantara Air Service.<\/p>\n
Garuda is presently the country's only flag carrier in
\ninternational routes. The carrier, which serves 35 international
\ndestinations, operates 60 aircraft.<\/p>\n
Out of Garuda's total fleet, the newest ones are only three
\nBoeing 747-400s.<\/p>\n
Meanwhile, Sempati Air, which serves domestic routes, flies
\nseveral regional flights to serve Kuala Lumpur and Penang in
\nMalaysia, Singapore, Taipei in Taiwan, Perth in Australia and
\nChristmas Island. The carrier operates more than 25 aircraft,
\nincluding new Fokker 70s.<\/p>\n
Meanwhile, Merpati (with its fleet of more than 100 aircraft),
\nBouraq (with 25 airplanes) and Mandala (with 10 airplanes) do not
\nhave any new aircraft.<\/p>\n
In spite of the condition, the government has announced that,
\nexcept Dirgantara, all of the domestic scheduled airlines would
\nbe permitted to fly abroad in 1998. The overseas routes opened to
\nthe domestic airlines include countries in Europe, Africa, Latin
\nAmerica and the Asia-Pacific region.<\/p>\n
American aircraft manufacturer Boeing said that airlines in
\nAsia are expected to acquire about 3,000 planes valued at US$245
\nbillion by 2010, making the Asia-Pacific region the world's
\nlargest market for commercial aircraft.<\/p>\n
However, domestic airlines will face difficulties in operating
\nnew aircraft due to their financial condition. Like Soelarto
\nadvised, the only thing the airlines may enhance is services,
\nincluding reducing the rate of delayed and canceled flights.<\/p>\n
BDW, an Australia-based aviation analyst publication,
\nmeanwhile, reiterated that this year will be the year for future
\nkey airline partnerships to be founded or entrenched. The report
\nsaid that long-term alliance strategy will be at least as
\nimportant as market decision this year.<\/p>\n
Airlines which enter 1997 without a sound strategic
\nfoundation will be unlikely to survive the medium term, the
\npublication said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/domestic-airlines-expected-to-face-stiff-competition-1447893297",
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