Airlines use gimmicks to lure more passengers
Airlines use gimmicks to lure more passengers
By I. Christianto
JAKARTA (JP): Several overseas airlines serving Indonesia have
launched gimmicks ranging from price discounts to special
packages to attract passengers in the dwindling market.
EVA Air, Singapore Airlines, Air France, Qantas and Ansett,
for example, have cut their fares by some 50 percent in
particular periods.
British Airways, German Lufthansa and KLM of the Netherlands
refused to comment on their latest fares but analysts say they
will have to follow the trend if they want to survive.
EVA Air spokeswoman, Diana Mawarsari, told The Jakarta Post
over the weekend that the airline had offered for the first time
new tickets with special prices to the United States with one-
month or six-month validity periods.
The price could be up to or more than 20 percent lower than
normal rates, she added.
"We also offered special rates for tour groups and individual
travelers from Nov. 1 to Dec. 12. This was quite helpful to
encourage more passengers to choose our flights."
She said that during the Sept. 15 to Dec. 12 period there were
also special packages to Los Angeles for a group of at least 10
members for just $999, much cheaper than the original fare of
$1,099.
EVA Air will operate an additional flight linking Kaohsiung
and Jakarta beginning Jan. 1, 1998.
Top executive of Air France in Indonesia, Christian Herpin,
said that Air France had also launched special rates.
"To serve our clientele and to keep our market, we offer
reduced fares to Europe," he said, adding that starting early
last month until mid this month, individual travelers could fly
Air France from Jakarta to a destination in Western Europe for
just US$900 instead of the normal rate of $1,450.
The fall in the rupiah's value of about 40 percent since early
July has made overseas traveling more expensive for Indonesians.
But this is not the only reason for the dwindling air
transport business in the country.
The haze problem, which recently blanketed most parts of
Kalimantan, Sumatra and neighboring Singapore and Malaysia has
also contributed to the fall in the number of inbound passengers.
Foreign tourists fear that the choking haze is still affecting
air traffic and tourist resorts.
Top executive of Cathay Pacific in Indonesia, Clement Lam,
agreed that the financial crisis and haze problem had affected
business.
Tan Chick Quee, the top executive of Singapore Airlines in
Indonesia, agreed.
"The situation is unstable and we should keep our heads so as
not to lose confidence, and avoid taking steps that would have
long term impact," he said.
Singapore Airlines offered a $900 Jakarta to London flight
instead of the normal $1,425 fare.
Cathay Pacific has just introduced a fare of $666 for two
people to Hong Kong, instead of the normal rate of $600 per
person.
The cuts in fares launched by the Asian and European airlines
provoked Australia's airlines to follow suit. Although Ansett
International and Qantas say they have not been seriously
affected by the currency crisis.
Con Korfiatis of Ansett and Ronny Mampouw of Qantas said their
airlines cut the price of a Jakarta-Sydney-Jakarta ticket from
about $600 to $700 to only $350 effective only in November.
Most of the gimmicks launched by the Asian, Australian and
European air carriers will end mid this month because December is
usually a peak season.
The international air carriers admitted that the ongoing
currency turmoil had affected their revenues due to the
decreasing number of passengers in recent months.
They said that situation in Indonesia in 1998 would greatly
depend on the stability of rupiah.
"Our load factors reached 80 percent and 75 percent in the
Jakarta and Surabaya outbound services respectively in August
1997, much higher than 65 percent and 60 percent respectively in
August last year," Diana said.
"But the figures dropped to 60 percent on average in September
1997, much less than 68 percent (Jakarta) and 70 percent
(Surabaya) in September 1996."
The Taiwan-based EVA Air currently links Indonesia (Jakarta
and Surabaya) and Taiwan (Kaohsiung and Taipei) 10 times per
week.
Diana said that the October load factor figures dropped to 45
percent in Jakarta and 40 percent in Surabaya, while in October
1996 the load factor was 70 percent on average.
The economic slowdown has affected air transportation
throughout the Asia Pacific region, which claims the strongest
air traffic growth rates in the world -- over 7 percent per
annum.
Herpin told the Post that Air France had also seen fewer
passengers flying from Indonesia to Europe.
Ansett and Qantas have seen stable load factors.
"In the last three months the outbound passengers to Australia
were relatively okay," Korfiatis of Ansett said.
He said that total of passengers flying from Indonesia to
Australia by Ansett during the January to October period this
year was up 11.7 percent over the same period last year.
Ansett's total passengers from Australia to Indonesia during
the January-October period this year was up 9 percent over the
same period last year, he added.
"Because Australia is quite close to Indonesia, meaning the
airfares are not as expensive as rates to Europe or the U.S.," he
said.