Tuesday, June 15, 2010

Sriwijaya Air ready to compete with new airlines


PT Sriwijaya Air is ready to compete with new airlines which just open the operation. Commercial Director of PT Sriwijaya Air Toto Sursatyo say, within the next 10 years the Indonesian domestic passenger market will grow twice than the realization of 43.5 million passengers last year. The potential is obviously tempting for the new airline to be able to enjoy it.

"Currently there are now 400 regular aircraft operating in Indonesia. With passenger growth doubled, then it required 800 aircraft in 2020. The question now is, can the existing airlines meet the demand. So the industry really need a new player," said Toto.

However, Toto cautioned prospective new airline to set up a large capital with a solid business development plan before entering the airline industry. "New airline must be qualified, credible, and enough capital. Do not enter this industry if you just try it, could cripple," he added.

As is known, earlier this year Minister of Transportation has received a SIUP request from the eleven airlines. The company is FireFly, Fly Cargo, Megantara Air, Jatayu Airlines, North Aceh Air, Sultra Air, Phoenix, Love Air Services, Bee Air Charter, Spirit Global Service and Life Air.

However, the Indonesian National Air Carriers Association (INACA) requested that the government stopped publishing SIUP until governments improve airport infrastructure has been assessed as unable to compensate for the increasing number of aircraft and passenger growth.