Star Air back in business<\/p>\n
Leony Aurora, The Jakarta Post\/Jakarta<\/p>\n
After 45 days on the ground, low-cost carrier Star Air returned
\nto the skies on Friday, while other airlines were forced to cut
\nback their operations due to the soaring prices of aviation fuel.<\/p>\n
Star Air has also slashed its fleet to three aircraft from
\nfive, and has undergone restructuring, carrying out cost-cutting
\nmeasures, including lay-offs, since it stopped operating on June
\n1, spokesman Wismono Nitihardjo said on Friday.<\/p>\n
"We did not have any new investors," said Wismono of the
\nreason behind the airline's comeback.<\/p>\n
"The owner, Ali Sugiarto, injected fresh capital into the
\ncompany," he said, without elaborating.<\/p>\n
The carrier's debts from the temporary closure have already
\nbeen taken care of, he added.<\/p>\n
Star Air decided to suspend the use of its Boeing MD 80
\naircraft -- which has a capacity of 162 passengers and needs more
\nfuel -- and to continue using three smaller Boeing B-737-200,
\nwith a capacity of 118 seats each.<\/p>\n
The budget carrier now serves only domestic routes, namely
\nfrom Jakarta to Surabaya, Jakarta to Manado, and Jakarta to
\nDenpasar and Kupang. It used to fly passengers to four other
\ndestinations, including to Kuala Lumpur.<\/p>\n
Soaring oil prices, which are hovering at around US$60 per
\nbarrel, have prompted state oil and gas firm PT Pertamina to
\nraise aviation fuel avtur and avgas prices.<\/p>\n
In the Soekarno Hatta International Airport in Jakarta, for
\nexample, avtur domestic prices rose 34 percent from Rp 3,210 (33
\nU.S. cents), excluding taxes, in January to Rp 4,290 this month.<\/p>\n
Such high avtur prices, plus Pertamina's new policy, which
\nrequires airlines to pay for the fuel on the spot in cash, have
\nforced many airlines to cut back operations.<\/p>\n
Privately owned Bouraq Airlines has continued operating with
\nonly two aircraft serving five destinations. For the last two
\nmonths, it has stopped flying to Manado, Batam in the Riau
\nIslands, Denpasar and Kupang, closed down representative offices
\nin those places and laid off some 100 employees.<\/p>\n
"We have still six more aircraft that we are not using at the
\nmoment," said the carrier's corporate secretary Boy Mamahit.<\/p>\n
"We have decided to maintain only routes that take about one
\nhour to cover," he said.<\/p>\n
"Longer routes require more fuel."<\/p>\n
Avtur costs now contribute to between 55 percent and 60
\npercent of total operational costs, said Boy, while before the
\njump in global oil prices, they contributed only 42 percent.<\/p>\n
Some players in the aviation industry were relieved when the
\nMinistry of Transportation issued Ministerial Decree No. 36\/2005
\non airlines' reference prices.<\/p>\n
Wismono said the decree, which determined floor prices for
\nairlines, boosted confidence and had raised fares by 20 percent.<\/p>\n
Boy, however, was not convinced.<\/p>\n
"After the peak season, the airlines will again lower prices
\nto attract customers," he said. "(Ticket) prices will not be on a
\npar with fuel prices," he added.<\/p>\n
Due to the high prices of aviation fuel at present, the
\nIndonesian National Air Carriers Association (INACA) has
\nestimated this year's number of domestic airline passengers will
\ndecline by up to 15 percent from the 25 million people who
\ntraveled by plane in 2004. (006)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/star-air-back-in-business-1447893297",
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