AWAIR to serve new routes with new planes

AWAIR to serve new routes with new planes

JAKARTA (JP): Private air carrier Air Wagon International
(AWAIR) is set to expand its services with two new aircraft and
four more domestic and two new international routes next month,
company managing director Rachmat Soebakir said on Tuesday.

He said the two new aircraft, both Airbus A-300s, would be
used in the company's new service to Singapore and Taipei as well
as new local destinations Surabaya, Denpasar, Batam, Makassar and
Manado.

"Based on our business plan, the new routes will be
operational beginning Oct. 9," he said in a statement.

He said one of the new aircraft had arrived in Jakarta last
week while the other was scheduled to land here in early October.

The aircraft are leased from international lessor at a cost of
around US$225,000 per unit per month, according to company's
spokesman Arifin Hutabarat.

Rachmat said AWAIR needed more aircraft in anticipation of
expected high growth in domestic air travel.

AWAIR, which only started commercial operations in June,
currently provides daily flights from Jakarta to Surabaya, Medan
and Balikpapan using two Airbus A-310-300 units.

The company holds the licenses to operate 27 domestic routes
and 28 international routes.

Rachmat said the new domestic routes to be opened early next
month would be flights connecting Balikpapan and Manado, Surabaya
and Makassar, Jakarta and Denpasar and Jakarta and Batam.

He said AWAIR also planned to expand its international
services to various destinations in Japan, Korea, Australia and
Europe.

The company expects to commence flight services to Japan and
Korea in the first quarter of next year followed by services to
Australia and Europe in the second quarter.

He said that in order to support the company's route expansion
it would continue leasing more aircraft.

He said AWAIR would add two more wide-bodied Airbus A-300s by
the end of this year.

"Eventually by the end of 2002, or the beginning of 2003, we
expect AWAIR to have a fleet of 27 aircraft in total," he added.

AWAIR is one of the seven new private airlines that started
operations in scheduled services this year following the
government's decision last year to allow new airlines or existing
charters to apply for licenses on to serve idle domestic routes
previously flown by the now defunct Sempati Air or existing
carriers Garuda Indonesia and Merpati Nusantara.

Indonesia had only five scheduled airlines, namely state-owned
Garuda and Merpati Nusantara Airlines and privately-owned Bouraq,
Mandala and Dirgantara Air Service prior to the government's
awarding of licenses to the seven new carriers: AWAIR, Bayu
Indonesia Air, Indonesian Airlines, Pelita Air Service, Lion Air,
Jatayu Air and Rusmindo Internusa Air.

Existing carries have accused the new airlines of "dumping
practices" by selling tickets far lower than market prices.

Rachmat defended his company's policy, saying that although
AWAIR's ticket prices were cheaper than Garuda Indonesia's
tickets, they were still higher than the tickets offered by other
new carriers.

He acknowledged that competition between local airlines had
become fiercer since the entrance of the new airlines. "But, the
competition is not only about the price, but also on products and
services," he added. (cst)