Thursday, August 19, 2010

Indonesia AirAsia will close 2 flight routes

The decision of PT Indonesia AirAsia (IAA) to  close the flight route from Jakarta to Medan and Jakarta to Surabaya certainly will not affect the capacity of flights to both these destinations. Both routes have the densest traffic flow with a number of airlines that compete in it.

"Competition was tight and ‘crowded’ for those routes. So if Indonesia AirAsia have other options it would be a company policy. But the flight capacity of those routes will not be disturbed, "said Tengku Burhanudin, Secretary General of the Indonesia National Air Carriers Association (INACA).

INACA annual data released in 2009 showed that Medan and Surabaya are the two most populous of the six airports in Indonesia. Last year, Juanda International Airport, Surabaya recorded a 8,436,000 flights, while the Polonia Airport, Medan recorded 3,840,000 flights. That’s why, this solid flight creates a high competition between airlines. Tengku Burhanuddin asserted, AirAsia's decision to close two routes is the company's strategy, not because these routes are empty of passengers.

Closure of these routes will commence as of October 1, 2010. AirAsia will only leave 20% of domestic flight route from all flights routes at the end of this year. "For time being, our international-domestic route comparison 75% -25%, and  it will be 80% -20%," said Corporate Communications Manager of Indonesia AirAsia, Audrey Petriny.