Awair begins low-cost service
Leony Aurora, The Jakarta Post/Jakarta
The more the merrier, so the saying goes. PT Awair, recently acquired by Southeast Asia's leading low-cost carrier, AirAsia, has returned to Indonesia's skies as the newest budget airline in the country's growing aviation industry.
The resurrected Awair flew its maiden flight to Medan, North Sumatra on Wednesday, almost 3 years after it suspended operations in March 2002.
"Our entire organization and operations have been enhanced and restructured to reflect the ethos of a low cost carrier," said Awair's chief commissioner Pin Harris.
AirAsia finalized a deal to buy 49 percent of the debt-ridden Awair for a token US$2 a few weeks ago. The Malaysia-based company has committed itself to injecting $10 million during the first phase of Awair's development.
"We will start our operation with one aircraft," said Awair's president director Sendjaja Widjaja, also known as a big player in the music industry with his company PT Musica Indonesia.
The airline's sole Boeing 737-300 with 148 seats will serve the Jakarta-Medan route once a day starting from Dec. 12 (twice a day after Dec. 17), as well as provide on daily flight each way between Jakarta and Balikpapan, East Kalimantan.
"We plan to be operating between five and six aircraft by July (next year) on other domestic routes, including Bali," said Sendjaja.
Sendjaja and Harris are the local partners controlling the remaining stakes in the newly relaunched airline, with 31 percent and 20 percent respectively.
"Our target is to fly 1.5 million passengers within one year," said Group CEO AirAsia Tony Fernandes, who attended the ceremony.
Awair is the company's second venture into neighboring countries after it acquired 49 percent of Thailand's AirAsia, which was launched in February and has since flown 1.1 million passengers.
For the promotional period, Awair is offering tickets for as little as Rp 88,000 (a little less than $10) for the two-hour Jakarta-Medan flight and Rp 99,000 on the Jakarta-Balikpapan route.
As many people have found out, very low prices offered by airlines are often only valid for a minuscule number of seats.
"We will always provide at least 30 percent of the seats at the lowest prices in our flights," Sendjaja told reporters. Tony quickly added, "Even our highest price will be lower than the other airlines."
Awair would focus on domestic routes first, Tony said. "There are so many places to go to," he added, citing Papua as an example.
Since the beginning of the budget sector's development in 2000, low-fares airlines have opened up opportunities for more Indonesians to fly. The unprecedented low prices have sometimes had people questioning the safety of air travel at the moment.
The deadly crash of an aircraft operated by the country's leading low-fares airline, Lion Air, in Surakarta, Central Java, two weeks ago, which killed 26 people, should serve as a wake-up call for all those involved in the aviation industry.
Tony gave assurances that there would be no compromising on safety. The airline's policy was to cut costs by operating on a no-frills, ticketless concept. It also only used Boeing 737s to reduce the costs of pilot training and to maximize expertise and maintenance levels.
AirAsia, launched on Dec. 8, 2001, was the first Malaysian budget carrier and started operation with only two aircraft. At present, it operates 26 Boeing 737s and flies 7.5 million passengers a year.
AirAsia raised 863.4 million Malaysian ringgit (about US$227.1 million) over a month ago in its initial public offering, the first for an Asian low-cost carrier and Malaysia's largest this year, to help finance the purchase of up to 80 new jets.
The company will announce a decision on whether to buy the new planes from Boeing or Airbus later this month.