Foreign airlines still have confidence in Indonesia<\/p>\n
JAKARTA (JP): The multitude of problems in Indonesia have not
\ndiscouraged several foreign airlines from serving the country.<\/p>\n
Since the financial crisis hit the country in mid-1997, there
\nhas been a significant decline in both inbound and outbound
\nflights in Indonesia, especially to Jakarta. Some foreign
\nairlines have even terminated their service to Indonesia.<\/p>\n
Drop in revenue is one reason airlines have decided to
\ndiscontinue certain routes. Meanwhile, the number of inbound
\npassengers to Indonesia will continue to decrease if the country
\nremains mired in political turmoil, which is sporadically marked
\nby bloody riots.<\/p>\n
Foreign airlines bring in foreign tourists. During the peak
\neconomic period, in late 1996, there were some 30 foreign
\nairlines serving the country and as a result Indonesia saw
\nsignificant tourist arrivals. There are now only half the number
\nof foreign airlines serving the country.<\/p>\n
Among the airlines still flying to Indonesia are Singapore
\nAirlines and its affiliated SilkAir of the SIA Group.<\/p>\n
"Airlines open and close routes based on operating economics,
\ntheir view of the future and their commitment to a particular
\nmarket. We are certainly committed to the Indonesian market, and
\nintend to provide the frequency and capacity for businessmen,
\ntourists and freight forwarders to support the Indonesian
\neconomy," said the general manager of Singapore Airlines in
\nIndonesia, Raja Segran.<\/p>\n
He said both airlines never reduced their flight frequencies
\nor capacity to Indonesia.<\/p>\n
"Indeed, as of last Friday, Singapore Airlines have begun
\noffering 10 percent more seats compared to the period before the
\ncrisis in 1998. SilkAir too has considerably increased its
\ncapacity to Indonesia, deploying the larger A319 and A320
\naircraft," he said.<\/p>\n
He said the SIA Group was bullish about the long-term
\npotential of the Indonesian market.<\/p>\n
"The current difficulties do not deter us. During this time of
\nnegative sentiments about Indonesia overseas, the SIA Group has
\nbeen promoting Indonesia aggressively all over the world to
\nrestore Indonesia's image, and to assure the traveling public
\nthat there are vast areas in Indonesia that are safe, secure,
\ncharming and waiting to welcome tourists," said Segran.<\/p>\n
Asian<\/p>\n
The two airlines from Singapore are not alone. Other airlines
\nfrom Asia are also confident of Indonesia.<\/p>\n
Japan Airlines (JAL), for example, doubled its flights to
\nIndonesia just when other airlines reduced or stopped their
\nservices to Indonesia. JAL currently operates a daily Osaka-
\nDenpasar-Jakarta-Osaka route served by DC-10 aircraft, in
\naddition to a daily Narita-Jakarta-Denpasar route with B-747
\naircraft. The expansion is in anticipation of a future increase
\nin air passengers to and from Indonesia.<\/p>\n
Meanwhile, two Asian airlines, Sri Lankan and Philippine
\nAirlines, resumed flights to Jakarta last December.<\/p>\n
Sri Lankan Airlines, which suspended its service to Indonesian
\nabout seven years ago due to aircraft shortage, now links Jakarta
\nand Colombo via Singapore twice weekly.<\/p>\n
A ticketing staffer of Philippine Airlines, Cindy Muliadi,
\nsaid the airlines served Jakarta-Manila via Singapore four times
\nper week.<\/p>\n
"So far the load factor is good and the prospects are also
\ngood," she said.<\/p>\n
Taiwan's EVA Air has just increased its flights to Indonesia.<\/p>\n
EVA Air Indonesia's country manager Makmun Hamsa said this
\nyear the airline had begun operating two direct flights per week
\nlinking Surabaya and Taipei.<\/p>\n
"Previously the flights to Surabaya were part of the services
\nto Denpasar. Now we fly two times directly to Surabaya and five
\ntimes directly to Denpasar per week," he said.<\/p>\n
The new route could maximize on both passengers and cargo from
\nSurabaya, he said.<\/p>\n
In addition, EVA also links Jakarta and Taipei daily with its
\nB-747-400 and MD-11 jets, he said.<\/p>\n
He said most inbound passengers to Denpasar were
\nholidaymakers, while most passengers to Jakarta and Surabaya were
\non business.<\/p>\n
According to Makmun, the company's current load factors to the
\nthree cities in Indonesia were quite promising.<\/p>\n
"This is the low season. We are sure the load factors will be
\nup during the school, summer and year end holidays," he said.<\/p>\n
For the United Arab Emirates' airline Emirates, Indonesia will
\nalso remain a potential market.<\/p>\n
Emirates's country manager for Indonesia John Rotikan said his
\nairlines had advantages unmatched by other air carriers.<\/p>\n
"Our load factor is so far stable at 76 percent," he said.<\/p>\n
Emirates has flights from Dubai to Jakarta, via Colombo and
\nSingapore, every Sunday, Tuesday and Thursday, using B-777
\naircraft.<\/p>\n
Destination<\/p>\n
Makmun said there are three types of passengers in Asia;
\nholidaymakers, businesspeople and workers.<\/p>\n
Holidaymakers usually go to the U.S. for high-tech
\nentertainment such as in Disney World, or to Europe to see
\nclassical buildings like the palaces in Britain. People also go
\nto the U.S. and Europe for business.<\/p>\n
"But now more holidaymakers and businesspeople go to the U.S.
\nas investments from the continent are everywhere," said Makmun.<\/p>\n
It is understandable if some airlines from Europe stopped its
\nservices in Asia, including Indonesia.<\/p>\n
In 1999, Swiss Air and British Airways suspended their
\nservices to Indonesia due to a continued drop in revenue. In the
\nsame year, Air France slashed its Paris-Singapore-Jakarta flights
\nto three times per week from six due to Indonesia's prolonged
\neconomic crisis.<\/p>\n
Air France now links Jakarta and Paris every Monday, Wednesday
\nand Saturday using its Boeing B-777 jets. The airlines competes
\nwith two other airlines from Europe, namely KLM of the
\nNetherlands and Lufthansa of Germany. KLM operates a daily flight
\nlinking Jakarta and Amsterdam via Singapore with B-747-400 jets,
\nwhile Lufthansa also operates its Jakarta-Frankfurt route seven
\ntimes a week. -- I. Christianto<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/foreign-airlines-still-have-confidence-in-indonesia-1447893297",
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"sponsor": "Okusi Associates",
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