U.S. aviation 'crisis' may benefit RI airlines
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)