Air taxi: Solution to traffic congestion

Air taxi: Solution to traffic congestion

Arief T. Syam, Contributor, Jakarta

The following data will show how acutely the public
transportation system in Jakarta has been damaged today: in the
past decade the number of motorized vehicles in Jakarta has grown
by 6 percent annually.

It would come as no surprise to someone who is familiar with
the city that about 4.95 million motorized vehicles travel across
Jakarta every day. Motorcycles make up 53 percent of this number.
Next comes private cars with 30 percent, buses with 7 percent and
trucks, 10 percent.

This condition has been worsened by the additional several
million motorized vehicles that come from outside the city. The
great number of motorized vehicles has led to serious traffic
congestion on many roads across the city.

One of the government's attempts to solve the problem of
traffic congestion is to lengthen the roads in Jakarta. In
reality, however, this would not have much impact.

Lengthening the roads would only increase the mobility of
private cars, and that is not part of an effort to build an
integrated road network system. Some 85 percent of road space is
used by private cars, which actually serve only 9.7 percent of
(car) trips.

Given the fact that the existing public transportation
in the city far from provides comfort and security, it is
understandable that so many people opt to use their private cars.

There are not enough air-conditioned buses in Jakarta, nor
enough comfortable and safe taxis. That's why, to meet the
demands of the "premium" market, several car hire companies have
started renting luxury cars.

Several taxi companies have also provided limousines. The
largest taxi company in Jakarta, Blue Bird, for example, has long
offered premium services. Its Silver Bird taxi service provides
luxury sedans.

Meanwhile, another taxi company, PT Centris Multipersada
Pratama Tbk, is planning to add 500 Toyota Limo sedans to its
taxi fleet, a program that will be implemented in stages up to
the end of 2005.

"This is in response to the market demand," said Omar Dhani
Hassa, its president director.

But don't jump to the conclusion that riding in a limo in
Jakarta guarantees comfort. Traffic congestion is a problem that
affects everyone.

One solution is air transportation. Several top executives in
Jakarta have resorted to this mode of transportation.

James Riady, the CEO of the Lippo Group, for example, has for
the last decade used a helicopter, particularly when he visits
the centers of his business activities in Lippo Karawaci, Lippo
Cikarang, Bukit Sentul real estate and, also perhaps, Depok Town
Square.

For James, and others with the means at their disposal, air
travel means avoiding the potentially disastrous scenario of
being late for a meeting due to a traffic jam.

A chopper is an obstruction-free and quick transportation
means. People who can afford to hire a chopper are willing to
fork out more money just to save time, and to make sure they will
continue to be highly mobile.

Indeed, the use of a helicopter as an air transportation means
is a business opportunity. The chopper is the right choice for
those who need to travel often and be on time.

A chopper, for example, can transport four to 13 passengers at
one time. As for landing and take-off sites, there are no fewer
than 24 heliports on the roofs of tall buildings, such as hotels,
on which helicopters can land.

A heliport is a vital facility for air transportation,
particularly in major cities. Outside Jakarta, such as Bekasi,
Karawang, Cikarang and Tangerang, particularly in factory areas,
there are also landing facilities for helicopters.

Of course, air taxi fares are high at between US$750 and 1,000
per hour, given the fact that a helicopter may cost some US$3
million.

Despite this, however, air taxis have regular passengers such
as executives wishing to visit their factories or hospitals that
need to air-lift patients to other hospitals.
During the 1999 general election, there was an increase in the
demand for air taxi.

Politicians, like former People's Consultative Assembly
chairman Amien Rais, used an air taxi to get from one campaign
venue to the next.

Despite its great potential, only a small number of aviation
business players in Indonesia operate air taxis.

There are several reasons for this: the high hourly rent, the
tight regulations imposed on this particular business and the
lack of regulation of its routes by the central government. One
of the air transportation companies is PT Helizona. Another such
company is Airpacific, whose base camp is located in Lippo
Karawaci, Tangerang.

"As a residential settlement area and an office zone, Karawaci
needs alternative transportation that links it with Jakarta,"
said Budhi Achaddian, the director. Starting its operation in
1996, Airpacific now owns three Bell 407 helicopters, each of
which can carry six passengers, excluding the pilot.

Every day, Budhi said, there is always a passenger that hires
their helicopter. Formerly belonging to the Lippo Group,
Airpacific can take passengers for at least four to five trips a
day.

When a foreign investor, for example, visits a company in
Jakarta and can only stay in this city for a very short time,
then hiring a chopper may be the best choice, especially if this
guest needs to visit several places.

If you hire a chopper, you can take him or her from the
airport to the pick-up point of the Airpacific helicopter. From
this pick-up point you can fly to anywhere you wish, going to
four or five places before the investor returns home.

While the air taxi business may be a potentially lucrative
one, it is quite difficult to operate a helicopter rental
company.

It must be remembered that maintenance costs can eat up 90
percent of rental fees. That is why air taxi operators in the
capital have not booked any significant growth.

And with little growth in the number of passengers, the air
taxi business has failed to attract many investors.

In addition, it is difficult to obtain an operational license
as an air taxi provider. Companies cannot simply start operating
helicopters as air taxis; there is a licensing process that must
first be completed.

Only companies with an Air Operation Certificate (AOC) are
allowed to get into the business. The international-standard AOC
can be revoked at any time if the helicopter operator fails to
fulfill the set standards, for example, if it fails to protect
the safety of its passengers.

That is why there are only a few air taxi companies in the
country. Besides Helizona and Airpacific, the other air taxi
companies in Indonesia are Indonesia Air Transport, which owns
eight helicopters, Derazona Air Service, which operates eight
choppers, and Pelita Air Service, which owns 15 helicopters.

Derazona Air Service and Pelita Air Service do not confine
themselves to spot charters or ad-hoc charters, i.e. the sort of
on-demand charters usually associated with air taxi services.

These two companies concentrate on scheduled flights on a
long-term contract basis. In the case of Pelita Air Service,
although it usually carries state officials, including the
president and vice president, it also has oil and mining
companies as regular clients.

It is true that air taxi services have yet to take off in
Jakarta. In the meantime, special regulations governing the air
taxi business, including technical provisions on the types of
helicopters that can be used and their routes, have yet to be
drafted. There is also the need to designate special flight lanes
and establish open spaces for landing purposes, as you have in
the United States.