Sudibyo M. Wiradi
\nThe Jakarta Post
\nJakarta<\/p>\n
More domestic airlines fly regional routes<\/p>\n
Indonesians wishing to travel to other Asian countries now
\nhave more air carriers to choose from, with several new domestic
\nairlines entering regional routes.<\/p>\n
In addition to established air carriers Garuda Indonesia and
\nMerpati Nusantara Airlines, other local airlines are now flying
\nto Asian countries, tapping the growing market in the region.<\/p>\n
Lion Air, which initially focused on domestic destinations,
\nstarted its Jakarta to Singapore flights twice daily last year.
\nIt also flies to Kuala Lumpur, Malaysia twice daily and to Ho Chi
\nMinh in Vietnam from Singapore three times daily.<\/p>\n
Privately owned Lion Air is among several new airlines that
\nhave survived fierce competition in the market.<\/p>\n
The government has issued licenses to at least 25 new airline
\ncarriers to fly the domestic routes since 2000. Several have
\nalready stopped operating, unable to compete.<\/p>\n
"Logically, an airline should not be afraid to open new routes
\noverseas so it can have a wider network," Lion Air public
\nrelations manager Hasyim Arsal said.<\/p>\n
If everything ran to plan, Lion would also fly to India;
\nGuangzhou, China; Hong Kong; Korea; Japan and Australia this
\nyear, Hasyim said.<\/p>\n
Other privately owned airlines spreading their wings to Asian
\ndestinations include Batavia and Star Air. Batavia Air currently
\nflies from Jakarta to three destinations -- Pontianak; to Kuching
\nin Malaysia; and to Guangzhou in China, daily. It is now
\npreparing to fly to the Australian city of Perth.<\/p>\n
Another new airline carrier, Star Air, is also preparing
\ninaugural flights to neighboring countries. "We will announce
\n(the destinations) when they are fixed," Star Air public
\nrelation manager Nurwulan Handayani said.<\/p>\n
Meanwhile, state-owned airlines Garuda Indonesia and Merpati
\nNusantara Airlines also plan to further strengthen their presence
\nin the region.<\/p>\n
Indonesian flag carrier Garuda Indonesia is expanding its
\nservices in Asian countries, especially to China, and to the
\nMiddle East.<\/p>\n
Several routes closed due to the economic crisis in 1997 have
\nreopened, including Saigon in Vietnam, and China's Shang Hai and
\nGuangzhou cities.<\/p>\n
Garuda already flies to several Asian destinations, including
\nJakarta to Singapore and Batam; Yogyakarta to Kuala Lumpur;
\nSingapore to Semarang; Yogyakarta to Singapore; Jakarta to
\nSingapore, Saigon; and Jakarta to Beijing.<\/p>\n
"We've also increased our flight frequency to other Asian
\ndestinations, including Guangzhou and Shanghai," Garuda's
\nPujobroto said.<\/p>\n
Other established players in the region are Singapore Airlines
\n(SIA), Malaysia Airlines, Thai Airways, Eva Air, China Airlines
\nand Southern China airlines.<\/p>\n
While they are competing with well-established local and
\ninternational airlines, newcomers say they have had a good
\nresponse from the passenger market.<\/p>\n
For the lucrative Jakarta to Singapore route, Lion Air
\ncompetes with giants Garuda and SIA. Despite its newness, Lion
\nAir claims its planes are on average 80 percent full on the
\nroute.<\/p>\n
Its service has been accepted thanks to its cheaper fares. The
\nairline's return ticket for Jakarta to Singapore sells for US$89,
\ncompared to $300 charged by SIA and $125 by Garuda.<\/p>\n
"Pricing an important element Asian passengers take into
\naccount. Therefore, we try to offer low fares to enable us to
\ncompete. But it does not mean that we offer lower fares at the
\nexpense of safety, service and punctuality," Hasyim said.<\/p>\n
Lion was able offer cheaper tickets because of tight
\nefficiency measures, he said.<\/p>\n
Lion Air operates fleets with more seating capacity, compared
\nto those operated by its competitors. While most airlines use
\nBoeing series aircraft like B737-200 or B737-400 with an average
\nof 100 seats, Lion Air operate McDonnell Douglas (MD)-82s with
\n160 seats. "With larger seating capacity, Lion Air can fly more
\npassengers than its competitors on every flight," he said, adding
\nthe leasing price of the Boeing and MD planes were almost
\ncomparable.<\/p>\n
Meanwhile, to compete with Malaysia Airlines for its Pontianak
\nto Kuching route, Batavia Air operates Fokker 28 aircraft with 85
\nseats. "We feel superior with Fokker 28s because our competitor
\nuses smaller planes," a Batavia Air spokesman said. "With an 85-
\nseat capacity, our air carrier has a load factor of 90 percent
\nfor the route."<\/p>\n
Again low fares count. Batavia Air's two-way ticket (valid
\nfor one-month) for its Jakarta to Guangzhou, China sells for only
\n$220 compared to the over $300 fare offered by other foreign
\nairlines.<\/p>\n
Although the new airlines generally operate leased aircraft,
\nthey must meet safety standards issued by domestic regulator the
\nMinistry of Transportation and international organizations like
\nthe Federation of Aviation Administration (FAA).<\/p>\n
"Leased aircraft should first pass a rigorous checkup by a
\npilot and a technical checkup undertaken by insurance companies
\nbefore becoming operational," the spokesman said.<\/p>\n
"An airline requires a huge investment and therefore the
\nairline company is very concerned about safety issues."<\/p>\n
For Garuda Indonesia, the low fares trend represents a new
\nchallenge. But to win competition at regional level, the operator
\nplaces 'service' -- not fares -- as its top priority.<\/p>\n
Garuda Indonesia's head of communication Pujobroto is firm in
\nhis belief that providing good quality service is the best way to
\nface competition.<\/p>\n
"Fare issues in regional markets are 'relative' because the
\nprimary need as far as the market is concerned is 'service',
\neither pre, or post-flight," he said.<\/p>",
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