Emirates drops daily Jakarta-Dubai service<\/p>\n
JAKARTA (JP): The United Arab Emirates-based airline Emirates
\nsaid on Thursday it had shelved plans for this year to introduce
\na daily flight service from Jakarta to Dubai from its current
\nschedule of four times a week due to sluggish demand in the
\ninternational market.<\/p>\n
Emirates' manager for Indonesia John Ratikan said that he
\nattributed the sluggish demand to the country's political
\nuncertainties.<\/p>\n
\"We've postponed it although we got the permit in January,\" he
\ntold a media briefing.\"We'll wait until demand recovers.\"<\/p>\n
John said the company feared that if it went ahead with the
\nplan, its load factor on the Jakarta-Dubai route would drop
\nsignificantly from last year's load factor of between 70 percent
\nand 75 percent.<\/p>\n
The airline has targeted a 28 percent growth in revenue from
\nits passenger service for the one year period between April 2001
\nand March 2002 but the airline is likely to be unable to reach
\nthe target based on the April and May performance, during which
\nthe company recorded a mere one digit of growth.<\/p>\n
He however declined to provide any figures.<\/p>\n
He further said the airline had revised down its revenue
\ngrowth target for its cargo service to 15 percent during the
\nperiod from the initial 20 percent due to sluggish demand.<\/p>\n
Cargo orders for the next six to twelve months had shown a
\ndeclining trend, adding that at present the airline mostly served
\non-arrival cargo orders.<\/p>\n
Average cargo prices had also decreased by 5 percent from last
\nyear's prices, he said.<\/p>\n
The cargo service accounts for between 20 percent and 25
\npercent of Emirates' revenue in Indonesia.<\/p>\n
John said the company would maintain its original revenue
\ntarget this year, hoping that the airline could offset a bad
\nresult between April and May.<\/p>\n
\"We still have several peak months ahead such as the school
\nvacation, the new year and the haj season,\" he said.(O5)<\/p>",
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