13 Indonesian carriers risk losing licences

Indonesia’s Ministry of Transport has given thirteen of the country’s carriers until the end of July to improve their financial positions, or risk losing of their Air Operator Certificates, according to a report in the Jakarta Post. The 13 carriers affected include: Indonesia AirAsia, Batik Air (part of the Lion Group), Cardigair, Transwisata Air, EastIndo, Survai Udara Penas, Air Pacific (Indonesia), Jhonlin Air Transport, Asialink Cargo Express, Ersa Eastern Aviation, Tri-M.G. Intra Asia Airlines, Nusantara Buena Air, and Manunggal Air.

Tri MG Airlines is one of the only three independent cargo carriers operating in Indonesia. The airline operates daily flights Singapore – Jakarta – Balikpapan five times a week carrying 15.5 tonnes of cargo per-flight. Tri M-G has a fleet of 11 freighters.

INDONESIA AIRASIA revenue increase 34.4%

PT Indonesia AirAsia has established itself in the low cost carrier (LCC). Over the past year, Indonesia AirAsia managed to collect revenue of IDR 3.7 trillion. This achievement is up 34.4% over 2010 revenue of IDR 2.7 trillion.

The increase is due to the addition of passenger revenue during 2011. "Indonesia Air Asia’s passengers increased 28% from year to year," said Jasmindar Kaur, AirAsia Berhad Company Secretary.

The report noted, the number of Indonesia AirAsia passengers achieved 5 million people last year. This number jumped 27.7% of total passengers in 2010 that as many as 3.9 million people. The increase is due to increased passenger Indonesia AirAsia passenger capacity of 5.1 million passengers to 6.4 million passengers. Of payload capacity, the average occupancy rate (load factor) is stable at 77%.

In addition, the number of flights by Indonesia AirAsia also increased 24% last year. In 2010 Indonesia AirAsia flight frequency reached 29,668 times, then last year the frequency of flight reached 36,653 times.

However, despite increased revenue, but Indonesia AirAsia's net profit in 2011 fell 86.9% from IDR 474.4 billion in 2010 to IDR 62.08 billion. Increased of burden of financing may the cause of the decline in net income. In addition, crude oil prices rose sharply last year also helped hoist the price of aviation fuel. "That's why Indonesia AirAsia's fuel costs last year totaled IDR 1.7 trillion," continued Jasmindar. These costs increased 67.2% of fuel costs in 2010 which amounted to IDR 1.02 trillion.

Not only Indonesia AirAsia is reaching revenue growth. Last year, the parent company of Indonesia AirAsia, AirAsia Bhd which also managed to record a revenue of RM 4.47 billion, up 13.31% of revenues in 2010 which amounted to RM 3.9 billion.

However, similar to Indonesia AirAsia, AirAsia Berhad's net profit also fell 46.8% from RM 1.06 billion to RM 564.1 million. This is triggered by rising fuel costs 41.6% of RM 1.2 billion in 2010 to RM 1.7 billion in 2011.  AirAsia Bhd while the number of passengers increased 12%, from 16 million passengers in 2010 to 17 million passengers in 2011. That, supported by increased transport capacity of Air Asia as much as 9%. In addition, this increase was also supported by the addition of the fleet. When in 2010 AirAsia Bhd has 53 fleet, then in 2011 increased to 57 fleet.

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Strengthen the domestic market, AirAsia open a new route from Surabaya

The airlines company, Indonesia AirAsia continues to strengthen domestic routes. On February 14, 2012, Indonesia AirAsia will open a new domestic route flights, Surabaya – Bandung and Surabaya – Denpasar.

"In addition to our commitment to develop the domestic routes, the second launch of this route is also our responsibility to encourage tourism and the economy of the archipelago," said Dharmadi, the President Director of AirAsia Indonesia on Monday (12/12).

Surabaya is the second largest city in Indonesia. Capital city of East Java's economy is based on the industrial sector and services trade, as well as the home of creative industries in the number of sectors, including advertising, architecture, crafts, interactive entertainment, publishing and printing.

Meanwhile, Bandung, according Dharmadi, known as the "Emerging Creative City" that offers a diverse product distributions, soap opera production houses, and culinary. The young generation of Bandung which will be full of innovative ideas has pushed the creative industries in the city is growing very rapidly.

Similar to Bandung, Bali also has the attraction of creative industries is unusually large, but rather based on local culture. Besides being a favorite tourist destination in the world, the island is also famous for its performances of traditional performing arts and antiques.

"With the new route Surabaya - Bandung and Surabaya - Denpasar, then Bandung, Bali and Surabaya are connected directly. Domestic connectivity is expected to facilitate and enhance the creative market exchanges among the three cities, "said Dharmadi. Previously, AirAsia already opened Surabaya – Medan route in 2010 and Jakarta to Semarang route.

For information, in the year 2012, AirAsia plans to increase market share in Indonesia from 3% to 10% and the target number of passengers to 6.2 million people. To achieve that, AirAsia has ordered 21 Airbus A-320 until later in 2016. In addition, AirAsia also began aggressively to open domestic routes in Indonesia.

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INDONESIA AirAsia international flight move to Terminal 3

Planning of Indonesia AirAsia (IAA) to bring together domestic and international flights in Terminal 3 of Soekarno Hatta Airport closer to reality. In the near term, PT Angkasa Pura (AP) II will provide a license to use the terminal 3 for the entire flight operation of IAA.

"Beginning next September we have been granted permission to IndonesiaAirAsia to operate in the terminal 3. Later planned to co-exist with other airlines such as Wings Air and Mandala Airlines that still wanted to fly," said Managing Director of AP II, Tri S Sunoko in Jakarta.

Director of operations and Techniques AP II, Salahuddin Rafi said, IAA international flight operations transfers made ​​to reduce the burden of international flights at the terminal 2 which is quite high. "International flight of Indonesia AirAsia is not much. But at least to reduce the existing burden, and could facilitate the IAA itself," said Rafi.

According to him, the capacity of Terminal 3 have been yet used to the maximum is 4 million passengers. In 2010 only 1.9 million passengers traveled by. Now estimated to be reduced, because Mandala Airlines no longer in operation. "Therefore, we provide international flights of Indonesia AirAsia to terminal 3, to be maximum," he said.

Next year, he explained, it is estimated there will be many more airlines are using the terminal 3 of Soekarno Hatta Airport, due to capacity will increase to 25 million passengers per year.

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AirAsia Indonesia, BEST airline at Changi Airport

AirAsia Indonesia airline has been named as one of the 10 best airlines based on the growth of passenger numbers by Singapore's Changi Airport. The airline is now flying passengers from various cities in Indonesia. The award was accepted by Widijastoro Nugroho, Director of Marketing and Distribution Indonesia AirAsia.

"We feel proud of being one of the best airlines based on the growth in passenger numbers in neighboring countries like Singapore. AirAsia Indonesia passenger occupancy rate for the route to and from Singapore to date are very good, which is about 85 percent," said Dharmadi, President Director of Indonesia AirAsia.

Canopy of the award is the Changi Airline Awards, held at the Shangri-La Hotel, Singapore. Changi Airport Group (CAG) held the annual awards ceremony, Changi Airline Awards, to celebrate the cooperation that has been well established by the airline which has been a partner of the airport. The event held since the awards began in July 2009.

Singapore has become a popular destination for users of aviation services, particularly in Indonesia. AirAsia Indonesia itself is currently flying as much as 13 times daily to Singapore from its hub in Jakarta, Denpasar, Bandung, and Yogyakarta. Singapore is a destination that can be completed in approximately two hours from four hub.

Not only AirAsia Indonesia which was awarded as the best airline from Changi Airport, AirAsia Berhad also received the same award in the event. Present as representatives of AirAsia Berhad is Kathleen Tan, Regional Head of Commercial AirAsia.

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AirAsia down Garuda Indonesia dominance in International Aviation market

The dominance of PT Garuda Indonesia in the international aviation market segments in the scale of the national airline competition began to be exceeded by PT Indonesia AirAsia (IAA).

In the first quarter of 2011, the number of passenger of AirAsia is able to dominate the international aviation market amounted to 43.55 percent of total passengers as many as 1.87 million people.

The Ministry of Transportation data is mentioned, the AirAsia is able to fly as many as 818,453 passengers. This figure rose 28.32 percent compared to the realization of the number of passengers for the first quarter of 2010 that 637,777 passengers.

The Garuda Indonesia is in second position which fly 690,336 people. However the increase reached 45.34 percent compared to first quarter 2010 that as many as 474,956 passengers. Garuda Indonesia has the international passenger market by 36.73 percent.

An estimated of quarter II to IV, the AirAsia will be able to reach more international passengers again. "Moreover, there will be a holiday, usually the trend will increase," said a spokesman for the IAA, Audrey Progastama Petriny.

This year, AirAsia has held two units of Airbus A320, bringing the total number of Airbus A320 operated into 16 units, plus four units of Boeing 737-300.

Additional two units of aircraft making company can increase the frequency of six flights, the Jakarta - Singapore, Denpasar - Singapore, Bandung - Denpasar, Bandung - Medan and Medan - Penang each one times a day round trip, and the Jakarta - Denpasar twice a day (return).

"AirAsia is targeting will fly 4.5 million passengers this year. The target of international passengers is expected as many as 3.5 million," added Audrey.

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