Local airlines not ready to operate under one flag<\/p>\n
JAKARTA (JP): Communications Minister Giri Suseno Hadihardjono
\nsaid yesterday Indonesia's airlines are still reluctant to
\noperate under one flag despite their financial problems.<\/p>\n
Giri said the country's five operating airlines still
\npreferred to run individual operations instead of working jointly
\nunder one, Indonesia Airlines, flag.<\/p>\n
The five air carriers announced in June a plan to combine
\ntheir operations through a pooling scheme to survive the
\nworsening financial hardship.<\/p>\n
\"The pooling system depends on the willingness of each
\nairline. If they aren't willing to join, then we don't need to
\nstart it soon,\" he said after installing the ministry's new
\nsenior officials.<\/p>\n
Under the proposed pooling system, the airlines -- state-owned
\nGaruda Airlines and Merpati Nusantara, and Bouraq Airlines,
\nMandala Airlines and Dirgantara Air Service -- were due to
\ncombine fleets and allocate the domestic routes to each carrier
\nand share the revenue.<\/p>\n
Local airline operators have been under severe financial
\nhardship as passenger numbers have declined drastically. The
\ncollapse of the rupiah by more than 80 percent since last July
\nhas more than tripled the spending for their dollar-denominated
\ncosts such as leasing and maintaining their aircraft.<\/p>\n
Giri said most of the local airline operators' finances were
\nat a critical point.<\/p>\n
\"Their revenues are much lower than their spending,\" he said.<\/p>\n
Noting the demands from the tourism industry to allow foreign
\ncharter planes to enter the country as a way to boost the
\nindustry, Giri said the government remained cautious on the
\nissue.<\/p>\n
\"Our task is to help tourism, but on the other hand, we cannot
\nlet it crush our domestic airlines,\" he said.<\/p>\n
He said only one charter plane from Europe had so far asked
\npermission to enter the country and that the ministry would check
\nwhether the plane would really carry tourists.<\/p>\n
Garuda<\/p>\n
Garuda President Robby Djohan said yesterday meetings last
\nweek with its foreign lessor, Airbus, in London had not gone
\nwell.<\/p>\n
Robby said Airbus agreed at the meetings to lower the payment
\nof the Airbus 330 aircraft to US$750,000 per month from $1.05
\nmillion.<\/p>\n
However, Robby said this was still too high.<\/p>\n
\"Our income from the Airbus 330 is about $600,000 a month, we
\ndon't want to have a negative balance.\"<\/p>\n
He said Garuda asked to reduce the payment to $550,000 per
\nmonth for the first three years to allow the airline to recover
\nin terms of market share, cash flow, profit and operations.<\/p>\n
Garuda uses Airbus 330 planes on Australian and Asian routes.
\nRobby said the planes are on a 12-year leasing term.<\/p>\n
Robby said Garuda would also start negotiations with Boeing
\nthis month over the five Boeing 737-300, 737-400 and 737-500
\naircraft it uses.<\/p>\n
\"The payments are very high, but I think we can get them
\nreduced,\" he said.<\/p>\n
The government has announced Garuda's foreign debts are
\ncurrently $200 million.<\/p>\n
At yesterday's ceremony, Giri installed Anwar Supriyadi as the
\nministry' new secretary-general, replacing Muchtarudin Siregar,
\nand Agus Rudyanto Ruwadi as the director general of sea
\ntransportation, replacing Soentoro.<\/p>\n
He also replaced Director General of Air Transportation
\nZainuddin Sikado with Soenaryo Yosopratomo and Head of the
\nNational Search and Rescue Agency Harjanto with Setyo Rahardjo.
\n(das)<\/p>",
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