Ansett, developing new market niches
Ansett, developing new market niches
The airline industry usually represents an early barometer of the economic health of a nation, or the relationship between two nations.
It is clear the economic health of the relationship between Indonesia and Australia is very strong indeed, if the recent growth of the airline industry is used as the measure.
Airline passengers continue to grow in record numbers, while airfreight has demonstrated substantial growth, albeit on a lower base. Passenger growth has averaged some 17 percent per year for each of the past four years, while the recent bilateral discussions between Indonesia and Australia resulted in a further capacity increase of some 38 percent over the coming 18 months.
The effect of this rapid increase in capacity growth and passenger numbers has been the introduction of new airlines to the market, the development of new city pairs between Indonesia and Australian cities and more innovative airfares and package holidays.
While Garuda Indonesia pioneered many of the new city pairs and played a major role responsible in the development of inbound tourism to Indonesia, particularly Bali, it was the Australian government's initiative in introducing multiple airline designation in February 1992 that played a major role in expanding opportunities.
The change of government policy enabled new airlines, such as Sempati Air and Ansett Australia, to enter the international airline market, although both had been operating for some time as domestic airlines.
Sempati Air commenced flights between Denpasar and Perth and later, Jakarta and Perth, while in September 1993, Ansett Australia commenced its first international flights between Denpasar and the four Australian gateway cities of Sydney, Melbourne, Perth and Darwin. QANTAS, at the same time, showed renewed interest in flying to Denpasar, matching the Ansett Australia services.
Ansett Australia, although new to international operations as a scheduled airline, was not inexperienced as such. It had submitted its first application to fly internationally as far back as 1945 and, in a series of initiatives, had assisted in the establishment and development of a number of new airlines in the South Pacific region during the 1980s. It had also operated a series of charter flights between regional Australian destinations and Denpasar during the 1980s and the early 1990s.
As a private enterprise airline, Ansett Australia had long demonstrated a willingness to be an innovative airline with a strong customer focus. And the airline's subsequent expansion of services to Jakarta in February 1996 represented a further commitment to Indonesia and the expansion of opportunities between the two countries.
The arrival of Ansett Australia to the Jakarta market has stimulated both the passenger and cargo markets. The airline's enthusiastic approach to developing new market niches, both inbound and outbound, has surprised many industry observers, with the airline clearly working to build long-term relationships in a number of areas.
That approach, combined with the airline's award winning in-flight service, has encourage other airlines to competitively respond with improved services. Direct flights from Jakarta to more destinations in Australia and new and larger aircraft types, have ensured business and leisure travelers can now confidently plan their travel needs between Indonesia and Australia.
The economic health of the relationship between Indonesia and Australia is certainly robust, with an outlook of continuing growth. The airline industry is playing its role with energy and enthusiasm and, no doubt, with a small amount of encouragement from the presence of Ansett Australia.