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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Maersk to cut Asia-Europe capacity by 9%

Maersk Line, the world's biggest container shipping company, will cut nine percent of its vessel capacity in the Asia-Europe trade in a bid to combat low freight rates clipped by oversupply, reported Reuters.

Maersk Line, a unit of Danish shipping and oil group A P Moller-Maersk, said the capacity reduction would be facilitated by a vessel-sharing agreement with French container shipping line CMA CGM.

"Oversupply of container vessels operating on the Asia-Europe trade lane has pushed Maersk Line's container freight rates to unsustainably low levels," the company said.

Analysts said the capacity cut, which was the first major move by Maersk Line's new chief executive Soren Skou, could help the company push through ambitious rate increases in March.

Sydbank senior analyst Jacob Pedersen said it was a significant break with Maersk Line's strategy throughout 2011 when it accepted lower rates in anticipation that rivals would withdraw capacity or go under.

"That has not happened yet to a large extent, but new alliances and therefore fewer players in the Asia-Europe trade nevertheless underpin hope for more balanced competition going forward," Pedersen said.

Pedersen said recently announced rate increases of US$700-$900 per 20-foot container on Asia-Europe routes, together with capacity reductions, could significantly improve the shipping industry's earning potential for 2012.

Maersk Line, which is expected to post losses for 2011 when A Moller-Maersk presents annual results on February 27, threw down a challenge to rivals last year by introducing a more streamlined and frequent service without a surcharge on its key Asia-Europe routes.

That move prompted some other boxship companies, including CMA CGM and Switzerland-based Mediterranean Shipping Co (MSC), to form new alliances to counteract Maersk.

"The reverse side of the coin is that deeply needed consolidation will now be postponed indefinitely to the detriment of the sector's – and Maersk Line's – long-term value creation," Pedersen said.

Maersk referred to an Alphaliner forecast that Europe to Far East container traffic growth would slow to 1.5 percent in 2012 from an estimated 2.8 percent in 2011, due to a weakening economic outlook in Europe. "The industry container vessel fleet, by contrast, is set to grow by 8.3 percent in 2012."

Maersk Line said it would make the adjustment without giving up any market share gained over the past two years. "We will defend our market share position at any cost, while focusing on growing with the market and restoring profitability," Skou said.

Maersk Line said the cooperation with privately owned CMA CGM would help it cut the cost of serving West Mediterranean markets, enable it to deploy its own vessels to areas where they were most needed and pursue further slow-steaming, or sailing at lower-than-normal speeds. Maersk Line said it would also consider additional steps to reduce capacity, including redelivery of time charter tonnage, lay-ups of vessels and slow-steaming.

Maersk reiterated that it would not exercise an option for the last 10 giant Triple-E class vessels out of a total of 30 it had initially contracted last year to Daewoo Shipbuilding & Marine Engineering of Korea.

source:cargonewsasia.com

PACIFIC ROYALE AIRWAYS new player in the Indonesia aviation industry

Indonesia airline industry will be crowded with the presence of a new airline Pacific Royale Airways. The airline was established since February 2011 will be played at a premium to an Airbus A320 and Fokker 50.

The signing of the cooperation of Pacific Royale Airways with a number of  operations conducted in the Singapore Airshow 2012 event at the Changi Exhibition Centre, Singapore, Thursday (02/16/2012).

CEO of Pacific Royale Airways, Sukardi said they will run a full service airline service or the premium class.

"Now days an airline that serves premium class there is only one in Indonesia, while the market growth continues to increase so that we will be a new alternative that will take the opportunity that is still quite broad," he said.

The airline will be based in Jakarta with branches in Surabaya, Batam and Medan. Those three cities will form a connective network of connections to several cities in the vicinity.

Sukardi – the former Vice President of the Garuda Indonesia Group - said they were optimistic with the available market. Pacific Royale Airways will operate the Airbus A320 from Jakarta to the main city branch, while the connections to other cities will be served by Fokker 50 aircraft.

Seriousness in the premium class is shown by the work with entertainment and communications design firm from the United States, Lumexis Corporation. In addition, Pacific Royale Airways will also work closely with Abacus International will handle information technology, especially in Internet-based ticketing system.
For operations, Royal Pacific Airways plans to bring four Airbus A320 for domestic lines and one Airbus A330-300 to regional and international lines. As for feeder, will be used five Fokker F50.

When operating in March 2012, the airline will operate two A320 and two F50. Pacific Royale Airways’ Chairman, Tarun Trikha said they were optimistic the passenger market in Indonesia is on the rise. "We will take the upper middle class market big enough. Indonesia is the most populous country after China, India, and the United States. Growth upper middle class is quite high," said Tarun.

As a new player in the premium class, Pacific Royale Airways will compete with Garuda Indonesia, which has been present for decades.

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Ideas to Deal with Business Promotion

Tons of ideas can be done whenever you want to make the promotion for your business. Well, you can see how trade show displays can be really great for such matter. The displays will be really amazing in catching the eyes of the people as long as you have the great designs for the displays and you can find strategic location to put the displays.

Well, perhaps, one of the most amazing moments to deal with the promotion is to use the exhibition. Do not hesitate to get one or two exhibit booths. There, you can display all of your business products and also the other things which are related to your business. Make the nice impression to the people so they will be attracted to give your booth a visit and spend some time there. You can provide the logo floor mats instead of the mats which simply say welcome.

With such mats, the people who visit your booth will be more interested and the possibility of them to become your customers can be greater. However, you also need to make sure the strength of the booth’s truss: danger warning. You do not want that the truss might fall and ruin everything under the booths. It might sound simple but you need to really pay attention to it.

Lion Air plans to go public delayed

Lion Air to delay plans to go public this year worth more than U.S. $ 1 billion. Rusdi Kirana, chief executive officer (CEO), Lion Air said, the delay made due to the deteriorating condition of the stock market.

As info before, Lion Air has ambitious expansion plans to increase its flight business. Moreover, the Indonesia's airline company already has had a record of buying 200 Boeing aircraft.

"We can not do it (go public) this year because of the situation with the financial crisis is not so good," said CEO Rusdi Kirana. Rusdi said Lion Air currently has a market share of 51% of domestic flights and plans to go public when their market share reached 60%, something which was expected to occur two years into the future.

Rusdi Kirana ever mentioned, he does not need the IPO funds to pay for orders the plane. Some time ago, the airline is the world's attention, because the largest aircraft order valued at U.S. $ 21.7 billion.

Airbus blamed the United States (U.S.) to apply political pressure to secure an agreement to buy the aircraft. More details, Lion Air to buy 230 planes of shorter route, which purchase was signed in the presence of President Barack Obama.

Regarding the case of drug use by Lion Air, Rudi denied. "The rumors say, the pilots I worked too hard, so they use drink and drugs," said Rusdi. He also explained, "People make up stories to discredit us," he said. In addition to developing its business, Rusdi claims to have set up 1,000 homes for his airline's staff.

Rusdi Kirasna also criticized Europe that still apply black list to Lion Air. While Garuda Indonesia and five other airlines to get relief. "I do not care if the EU wants to blacklist Lion Air, Indonesia is a our market, and I want justice," said Rusdi.

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SINGAPORE Airlines quarterly profit declines 53pc to US$108 million

SINGAPORE Airlines (SIA) posted a 53 per cent fourth quarter net profit loss to S$135.2 million (US$108 million) year on year, drawn on revenues of S$3.88 billion which changed little.

Controlled by state investor Temasek Holdings, Singapore Airlines, the world's second largest airline, attributed the decline to the harsh global economic environment, decreasing demand in passenger and cargo markets as well as high fuel prices. Its fuel bill soared 33 per cent in the quarter from a year ago, the company said.

Its profit was lower than the average forecast of S$162.5 million from four analysts polled by Reuters. This is the fourth straight quarter that the airline's profit has underperformed analysts' expectations.

Singapore Airlines said weakness in both passenger and cargo sectors would persist. "Forward bookings continue to show signs of weakness in the final quarter of the financial year, due to uncertainty in the global economy and the protracted Eurozone debt crisis," the airline said in a statement.

"Passenger yields are expected to remain under pressure while cargo yields are expected to continue to decline," it said, adding that slack air cargo market is likely to continue due to soft demand in major developed countries.

To expand, the airline plans to commence its own long-haul budget airline, Scoot, by mid-2012, reported the USA Today, saying that this would help the Singapore Airlines group, including its regional unit, SilkAir, and its short-haul budget affiliate Tiger Airways (with a 33 per cent stake), to run against the odds in 2012.

Late last year, the International Air Transport Association (IATA) reduced its forecast for airline industry profits by a quarter to $3.5 billion for 2012, adding that IATA warned the industry's losses would increase to an US$8.3 billion if Europe's debt crisis deepens and provokes a new financial crisis. Singapore Airlines quarterly profit declines 53pc to US$108 million

source: shippinggazette/picture: google.com

AIRASIA opens new flight route SEMARANG - Kuala Lumpur

Low cost carrier, AirAsia, on Monday February 2, was officially have its maiden new flight route from Semarang to Kuala Lumpur. At this inaugural flight, occupancy rates of more than 90%.

Air Asia Regional Head of Commercial Kathleen Tan said Semarang is an unique destination. Many things that make Semarang is interesting, from rapid economic growth, colonial heritage buildings, to the islands within a short tour. "We're really excited to bring tourists from around the world to this historic Semarang," she said.

With the opening of the new route Semarang - Kuala Lumpur, AirAsia already flies to Kuala Lumpur from 14 cities in Indonesia. Prior to Semarang, among other previous departures are from Jakarta, Surabaya, Medan, Yogyakarta, Bandung, Denpasar, Solo, Balikpapan, Palembang, Aceh, Pekanbaru, Padang, and Makassar.

To strengthen the network of routes, AirAsia will also serve Semarang - Jakarta route twice per day, starting March 9. AirAsia Indonesia president director Dharmadi said that this step taken by the company's commitment to serving the domestic market, because the international market is already quite strong.

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MANDALA AIRLINES’s AOC will issued in Feberuary 2012

Ministry of Transportion ensure the return of Mandala Airlines flight conditions ie Air Operator Certificate (AOC) will issued in the second week in February 2012 and the airline is re-aired in April 2012.

"The delivery of Mandala Airlines AOC [Air Operators Certificate] planned to be done in the second week in February and in April 2012 operating plan," said Head of Public Communication Ministry of Transportation, Bambang S.Ervan.

He added the airline even begin to bring its first flight on Sunday (29/1) type Airbus 320.

"Technically, Mandala Airlines meets the requirements. They plan to fly in April, the aviation business license (SIUP) already extended four months from January 2012 for the maintenance of the AOC is in the final stage, "said Bambang.

Previously Director of Airworthiness and Aircraft Operation Ministry of Transportation, Diding Sunardi the reveals the process of issuing the Mandala Airlines AOC has entered the third stage or final stage, which is the middle of the process evaluation of the documents and related administrative procedures. That is, the time is not long, the AOC can be issued.

Separately, Director General of Civil Aviation Herry Bakti S. Gumay said the deadline for Mandala Airlines is still flying for granted an extension of up to four months post January 12, 2012.

"The extension of 4 months is still valid because the AOC was not finished," he said.

Herry add the AOC of Mandala Airlines is the third stage, so there are still two more stages. "If for the final process of AOC, should have the fifth stage," said Herry.

Devin Wirawan, Saratoga Capital Investment Managers, the majority shareholder of Mandala Airlines, it is ready to fly according to the deadlines set by the government. Mandala Airlines is now just waiting for the issuance of the AOC as a foundation to operate again.

About the readiness of the fleet, Devin said, Mandala Airlines will follow the provisions of the Act No.1 of 2009 on Aviation, which is 10 aircraft with five of them owned status. "It's two Airbus A320 to arrive in Indonesia as soon as AOC is published. If present in Indonesia there will be a parking fee, "he said.

The Mandala Airlines flight routes will not vary much with the previous route. Mandala Airlines had flown four domestic routes and 16 international routes, including Singapore. However, because the plane is still small, temporarily restricted Mandala Airlines will fly or not all the routes flown, the priority is to Singapore.

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Hanjin posts US$731 million loss, sales fall 1pc, volumes grow 12pc in 2011

HANJIN Shipping, South Korea's biggest and the world's ninth largest container liners, have posted its 2011 results with a net loss of KRW823.9 billion (US$731 million), an operating loss of KRW492.6 billion due to high fuel costs and decline in freight rates.

Its full-year 2011 container volumes rose 12.4 per cent year on year, but the total sales were down 1.1 per cent to KRW9.52 trillion. This reflects that the negative operating factors have eroded profitability.

Hanjin's container division recorded an operating loss of KRW550 billion, said the company statement, because of high oil prices, soft freight rates and too much tonnage afloat.

The bulk division posted 4.9 per cent year-on-year growth in operating profit at KRW53.5 billion, due to the recovery in freight rates and 35.1 per cent cargo volume rise in the dedicated vessel section.

Hanjin believes the oversupply problem will persist in 2012 due to continuous deployment of mega-sized vessels.

source: shippinggazette / picture: google.com