Merpati to open 49 new routes this year
Arya Abhiseka, The Jakarta Post, Jakarta
State-owned airline Merpati Nusantara plans to open 49 new routes serving Indonesia's remote regions, mainly in Papua province, company president Hotasi Nababan said Wednesday.
Hotasi said the "pioneering flights" would also cover areas in East Nusa Tenggara, North Sulawesi, Southeast Sulawesi, Maluku and North Maluku.
He told The Jakarta Post the service should help provide a catalyst for economic development in the areas, particularly in Indonesia's east.
The government will subsidize the flights to help cover expected losses in the early years of operation.
For decades, economic development in the eastern part of Indonesia has lagged behind Java, including in transportation infrastructure.
Earlier this year, Merpati signed a cooperation agreement with the North Sumatra administration, under which the airline launched a special service to help promote the economic potential in western coastal areas of the province.
The special route is served by a new airline called Sumut Airlines, which is 70 percent controlled by Merpati, and the remaining shares owned by the North Sumatra administration.
The provincial government subsidized the operating costs carried by Merpati.
"We see the pioneer flights as a valuable asset (for Merpati)," Hotasi said.
The second largest state-owned airline company also plans to expand its fleet from the current 35 aircraft to 42 by the end of the year by leasing from overseas to serve the new routes.
"We are looking to lease more DHC-6 (Twin Otter) and CS-212 (Cassa) planes for the pioneer flights," Hotasi said.
After spending most of its years in the red, Merpati made a Rp 43 billion (US$4.8 million) profit last year.
This year, the company predicts its profits will triple to Rp 136.4 billion.
The company still has Rp 1.4 trillion in total debt.
Elsewhere, the government has approved a fund of around Rp 1 billion to support the pioneering flights in Central Sulawesi, which serve Palu-Tolitoli-Buol routes.