Air France not to reduce flights despite slump
Air France not to reduce flights despite slump
JAKARTA (JP): Air France said yesterday it had no plans to
reduce its Jakarta-Paris service despite a sharp decrease in
passenger volume in the first semester of this year.
The airline's regional general manager, Christian Herpin, said
the airline would maintain its six weekly flights serving Paris-
Jakarta route, although its load factor had dropped to 55 percent
from the usual 85 percent.
He said the decrease in load factor and a 40 percent cut in
fares had lowered revenues from the route by about 40 percent in
the first semester of this year.
He expected the airline would suffer a deficit on the route
this year.
Herpin said the timetable of six flights weekly serving
Jakarta-Paris was part of the airline's long-term plan.
"Even with the crisis, it is part of our five-year strategy."
In April, Air France added one flight, an addition to the five
existing flights serving the Jakarta-Paris route, with one stop
in Singapore.
"We are not only considering the short term. We prefer to wait
and see and invest for the long term. Indonesia is a country with
more than 200 million people, it has great potential for tourism
and business, so we would be crazy not to invest here."
The crisis, in which the rupiah's value against the U.S.
dollar has plunged by 80 percent since July last year, has
drastically reduced the number of the country's outgoing
travelers.
This year, the nation's tourist sector reeled from multiple
blows of international media reports on the social unrest, the
uncertain political situation and a choking smog from massive
forest fires.
Fears over social unrest caused by the crisis and by political
tensions surrounding the presidency have already prompted a large
number of foreign tourists to cancel their plans.
Herpin said the number of foreign visitors would likely rise
in the second half of this year because of cheaper travel here.
In Indonesia, Air France recorded a 20 percent increase in
sales for passenger and cargo services last year.
"We are aiming for a 3 percent growth in the market share of
Europe-Jakarta flights within three years," Herpin said. He added
the airline has a 7 percent share of total Europe-Jakarta
traffic.
Air France will increase its capacity by 12.4 percent by
adding new routes and increasing frequencies on existing services
globally, he said.
"By the end of 1999, it is expected that Air France will have
achieved the 40 percent expansion on the Europe and Asia routes
as planned." (gis)