Merpati is striving to improve performance<\/p>\n
JAKARTA (JP): As the tariff war among the country's scheduled
\nairlines ends, competition in domestic air service is currently
\nfocusing on the quality of services and human resources, an
\nexecutive says.<\/p>\n
\"We have to start concentrating on improving our services and
\nthe quality of our human resources, particularly pilots,\" Merpati
\nNusantara President Ridwan Fatarudin told reporters after
\nattending a ceremony to commemorate the company's 32nd
\nanniversary here, yesterday.<\/p>\n
He said that Merpati, a subsidiary of the state-owned air
\ncarrier Garuda Indonesia, currently hires 600 pilots who go on to
\nobtain further training in Australia.<\/p>\n
Fatarudin also said that Merpati will soon change the uniforms
\nof its cabin crew with the aim of creating a better image for the
\ncompany.<\/p>\n
\"We are also waiting for the government regulation that will
\nseparate the management of Merpati from Garuda,\" he said.<\/p>\n
The proposal on the split of the two companies was submitted
\nto the government last year after a study showed that there were
\nconflicts of interest that affected the operations of the two
\nairlines. Garuda currently concentrates its service on
\ninternational and major domestic routes, while Merpati focuses
\nits business on domestic flights.<\/p>\n
Merpati, however, has now been allowed to serve Singapore and
\nAustralia.<\/p>\n
Merpati, has a fleet of 90 aircraft, including five advanced
\nturbo propellers (ATPs), 11 Cassa-212s, 10 Twin Otters, 13
\nFokker-27s, three Fokker-100s, 14 CN-235s, six DC-9s and 28 F-
\n28s. The company currently serves 182 routes, including some
\nborder crossing flights between Palembang and Singapore,
\nPekanbaru and Singapore, Pontianak and Singapore, Padang and
\nSingapore, Kupang and Darwin, and Denpasar and Port Hedland.<\/p>\n
According to Ridwan, among the country's six scheduled air
\nairlines, his company has the majority of routes. He said that
\nthis also includes remote areas with a small number of
\npassengers.<\/p>\n
Besides Merpati and Garuda, Indonesia also has four other
\nscheduled air carriers -- Mandala Airlines, Bouraq Indonesia,
\nSempati Air and Dirgantara Air Service.<\/p>\n
Cancellation<\/p>\n
Meanwhile, Merpati's finance director, Syarifuddin Iteroedin,
\nsaid the government will cancel a plan to buy six Fokker-100
\naircraft for Garuda because there is no agreement on prices.<\/p>\n
Garuda previously planned to buy 12 new F-100 aircraft, whose
\ndelivery would be transferred to Merpati because Garuda would no
\nlonger operate such aircraft. Merpati, however, has refused to
\nprocure the airplanes at US$32 million each as the company
\nbelieves that their proper price should be only $28 million each.<\/p>\n
Iteroedin said that after a series of negotiations, Merpati
\nreached a conclusion that half of the order should be canceled.<\/p>\n
\"Three F-100s have been delivered to Merpati, while three
\nother will be leased at $275,000 per month for 12 years,\" he
\nsaid. He added that the Indonesian and the Dutch parties will
\nhold a meeting about the cancellation of the other six F-100s.<\/p>\n
He admitted that Merpati or the government will likely have to
\nbear a penalty due to the cancellation, \"but it's a way-out.\"<\/p>\n
Iteroedin said Merpati expects to gain total revenues of Rp
\n600 billion ($275.86 million) this year, some 10 percent higher
\nthan last year.(icn)<\/p>",
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