Garuda Indonesia freed from non-profit routes

JAKARTA (JP): Director General of Air Transportation Zainuddin Sikado yesterday ordered all scheduled airlines, except national flag carrier Garuda Indonesia, to ply the country's low-profit "pioneer routes".

Zainuddin said flight schedules for the domestic routes, including pioneer routes to the country's remotest points, would be restructured gradually because it required air carriers to adjust their respective fleet plans.

He said the responsibility for flying pioneer routes was not Merpati Nusantara Airlines' alone. All private air carriers should share the responsibility, he said.

Pioneer routes, which offer low profits due to their small traffic volume, are currently served by state-owned Merpati Nusantara Airlines. Up to 40 percent of Merpati's scheduled flights go to remote areas.

The other state-owned carrier, Garuda Indonesia, plies domestic trunk and international routes.

The government has no regulations requiring private air carriers to fly these routes.

"Pioneer routes should be served by all private air carriers. But they may choose which routes to serve," he said, as quoted by Antara. He did not elaborate.

Antara reported that privately-owned Sempati Air was prepared to serve the pioneer routes.

Beechcraft

Sempati's director for operations and technical affairs, Budihardjo, was quoted as saying that the company planned to order 10 United States-made Beechcraft passenger aircraft to ply the new routes.

"We have submitted a request to the office of the State Ministry of Research and Technology to be allowed to lease those aircraft but no response has been given so far," he said.

He said if the minister issued a license, Sempati would lease the aircraft for a five-year period.

Meanwhile, Zainuddin announced yesterday that starting June 22, all travel agents in Jakarta would be required to sell endorsable tickets issued by the Indonesian National Air Carriers Association.

They would no longer be allowed to sell tickets issued directly by domestic airlines.

Zainuddin said the ruling would be applied in Jakarta first but would gradually be effected in other provinces.

The ruling followed last month's trial operation of the endorsable ticket system by the country's six scheduled domestic airlines: Garuda Indonesia, Merpati Nusantara Airlines, Bouraq Indonesia, Mandala Airlines, Sempati Air and Dirgantara Air Service.

Domestic passengers who hold endorsable tickets may change their bookings from one airline to another if they are unable to use their original booking. Changes will be allowed in cases of flight delays of two hours or more, or cancellations.

The endorsable ticket system is to end price wars between the six scheduled domestic airlines.

Bank Central Asia has been appointed as the clearing bank to supervise payments for endorsable tickets.

Under the system, travel agents and airlines will no longer be able to give discounts to lure customers. (pwn)