Garuda Indonesia freed from non-profit routes

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)