U.S. aviation 'crisis' may benefit RI airlines
JAKARTA (JP): The United States' aviation crisis sparked by last week's terrorist attacks may prove beneficial for local airlines flying regional routes, with competition within the region likely to slacken, an expert said on Friday.
Indonesian Air Carriers Association (Inaca) vice chairman Bachrul Hakim said on Friday that the possibility of American airlines cutting their flight schedules in the Asia Pacific region would give local airlines a better chance of competing.
"Competition is fierce with American airlines for intra-Asia routes, especially as the airlines have certain privileges," he told The Jakarta Post.
Bachrul, who is also PT Garuda Indonesia's executive vice president for commercial affairs, cited that a privilege had been given to American airline Northwest to fly Osaka and Jakarta, even though the route was already pledged to Japan Airlines and Garuda. He did not elaborate.
He also said that the downturn in the aviation industry could cause aircraft manufacturers to slash the prices on their airplanes.
"The aircraft leasing market is also likely to experience lower prices," Bachrul said, explaining that Garuda mostly lease their airplanes from American companies.
Last week two hijacked airplanes slammed into the World Trade Center in New York, obliterating both of its towers. Another aircraft caused significant damage to the Pentagon in Washington, and a fourth aircraft crashed in Pennsylvania.
The terrorist attacks have caused a severe downturn in the already ailing American aviation industry, and several airlines including AMR Corp. and United Airlines, have said that they may be forced to lay-off workers.
The attacks have suppressed U.S. demand for air travel so much that experts have forecast traffic could be down by between 25 percent and 65 percent in coming weeks and months, with fearful passengers canceling or postponing trips.
The sudden plunge in air travel demand has resulted in U.S. airlines reducing their flight schedules.
Separately, Association of Indonesian Tour and Travel Agencies (ASITA) chairwoman Meity Robot said that the Indonesian tourism industry could be facing a worse tourism recession than that of the economic crisis in 1998.
"This time it is global. People all over the world are hesitant to travel," she told the Post.
Meity said that the attacks had caused several cancellations of tour programs to the country, including an American tour group scheduled to depart on the day of the attack.
A tour operator in Makassar, South Sulawesi, also received the cancellation of a group of between 15 and 20 people for an adventure tour, she said.
Meity warned that, in view of recent developments, the government should revise its foreign visitor target of 5.4 million people this year to a more realistic level.
"Sure we can be optimistic about this, but looking at recent developments, it would be wise to be more realistic," she said.(tnt)