Sumut Airlines likely to use Malaysian aircraft

Medan, North Sumatra: The North Sumatra administration-owned airline company, PT Sumut Airlines, is likely to use aircraft belonging to Kuala Lumpur-based charter company PT Rabin Global Airlines to help open up the province and help improve its exports.

Budi Sinulingga, chief of the province's development planning board, said Rabin Global, one of three charter companies offering aircraft to the airline company and the provincial administration was still conducting a feasibility study on its offer.

"The three companies have already lodged their own proposal but according to our study, the provincial administration will likely accept Rabin Global's bid," he said here over the weekend.

The airline was established recently by the provincial government in cooperation with seven remote regencies to improve transport links.

The seven regencies were Central, North and South Tapanuli, Mandailing-Natal, Padang Sidempuan, Nias and Sibolga, all located along the province's west coast.

Sinulingga said Sumut Airlines will sign a three-month contract with Rabin Global to serve the Sibolga-Kuala Lumpur- Medan-Lhokseumawe route for passengers and the Sibolga-Kuala Lumpur route for cargo.

He said Ravin Global would provide two Fokker-27 airplanes, a cargo plane and a helicopter to serve the routes.

"The cargo aircraft will transport some 20 tons of fresh fish from Sibolga to Kuala Lumpur every day," he said, adding the airline would start operating in June.

Abd. Razak Omar, operation director of Rabin Global, said his company would invest US$30 million if the provincial administration decided to use its airplanes.

"The money will be used to prepare the Fokker-27 and cargo airplanes and to insure them," he said.

The seven regencies have been in urgent need of air transport since both government officials and local businessmen have to spend a day traveling by land to reach either the provincial capital, Singapore or Malaysia.