MAS targets 8% growth in RI market

The Jakarta Post, Jakarta

Malaysia's top carrier, Malaysia Airlines System (MAS), targets higher revenue and numbers of passengers from its flights serving Indonesia-Malaysia routes this year.

The company aims to boost revenues by 8 percent from last year's 169 million ringgit (about US$42 million) and the number of passengers by 4 percent from about 300,000 last year, MAS area manager for Indonesia Dzulkefli Zakaria said on Monday.

"Indonesia is the world's fourth most populous country, and we are optimistic to be able to expand our market here," he said at a media gathering.

MAS serves 76 flights per week for seven destinations in Indonesia, enjoying an average 70 percent load factor.

Syed Abdillah Azis, MAS regional manager for ASEAN, said that Indonesia represented the largest contributor to revenues and numbers of passengers, as compared to those from other countries in the region.

Azis mentioned that last year's passenger revenue stood at 7.9 billion ringgit, which reflected a 29 percent increase from the revenue booked a year earlier.

A report from the Malaysian Tourism Board said that more than 80,000 Indonesians had come to Malaysia last year for various purposes, including business, leisure or tourism, health care and education.

At present, the carrier holds about 50 percent of Malaysia- bound flights from Indonesia, Dzulkefli said.

"But the biggest potential market that we haven't managed to maximize is passengers for umroh (minor haj pilgrimage), with an estimated potential revenue of 1 billion ringgit," he told The Jakarta Post.

Moreover -- as stated by the MAS assistant general manager for advertising, promotions and branding Yazid Mohammed -- most Indonesians were not yet familiar with the company's brand and products.

"Indonesia's market is important, but we feel our engagement with the customers is not enough," he said.

For that purpose, MAS has announced plans to organize the first Malaysia Airlines Travel Fair (MATF) outside Malaysia at the Jakarta Convention Center from Sept. 23 to Sept. 25.

The three-day fair is expected to attract some 100,000 visitors and generate 20 million ringgit in revenue. The company has set aside $1 million to promote the event.

"Three weeks before the event, we will intensify the promotion of the fair through various media," said Yazid.

Dzulkefli added that the fair would also offer special price discounts for various travel packages, which would be valid until May 30 next year. (006)