Lion Air Group Launches Batik Air

Lion Air Group will again hit the Indonesian aviation world with the launch of the latest airline subsidiary Batik Air to serve full service but at a cheaper price than are currently they have.

"Today we launched the latest airline, a subsidiary of Lion Air, the Batik Air, which will serve full services with competitive prices and excellent service," said Lion Air general director Edward Sirait while welcoming the arrival of the first Batik Air aircraft in Terminal 3 Soekarno-Hatta Airport, Cengkareng, Tangerang, on Thursday (25/4).

He adds to this new airline, it will put forward the concept of service excellence and timeliness. Regarding tariffs, of course, will be adjusted and will be more competitive than it already is today.

"We note the condition of the market, that go into the business, if the market vulnerable to price, we will consider. Full service different from the LCC (low cost carrier), frequent flyer passengers, the price is not the main, essential services and the timeliness of the service, "he said.

According to Edward Sirait, the presence of Batik Air not be a contender for full service airline that already exist today that Garuda Indonesia, but to be given the complement of air passenger growth of 20% per year

LION AIR passenger numbers in the first quarter rose 10%

Indonesia national airline PT Lion Mentari Airlines or Lion Air successful a growing number of passengers during the first quarter of this year. The number of airline passengers increased by 10% over the same quarter last year.

General Director of Lion Air, Edward Sirait explain the increase in passenger numbers due to the revitalization of the fleet is carried out by the company. In addition, Lion Air also made additional flight frequencies on domestic routes.

In the first quarter of this year, Lion Air recorded an increase of about 800,000 passengers, up 10% over the same quarter last year amounted to 7.2 million passengers.

"Of the eight million passengers, mostly from domestic flights is 98% or 7,840,000 passengers, while the rest coming from international flight around 160,000 passengers," said Edward. 

Edward said that most domestic routes is Jakarta-Medan route. This route has 20 times flights per day. The load factor for the Jakarta-Medan route stable at 82.5%. While on international routes, the airline is still concentrating on the route from Jakarta to Singapore, Jakarta to Jeddah and Jakarta to Kuala Lumpur.

Although there is the addition of 10% the number of passengers in the first quarter of 2012, but he was pessimistic until the end of this year could raise the overall airline passenger numbers up 10%. Edward argued, the month of July, after the September school holidays and after the Eid holidays are the low season.

Last year, Lion Air transport 24.97 million domestic passengers in 2011, or approximately 41.59% of total domestic passengers nationwide. Edward says, the flight routes which opened earlier this year was a direct route from Jakarta to Manado since last February 2012. While the end of this month Lion Air will open two direct routes namely Surabaya to Ambon and Surabaya to Palu without transit in Balikpapan.

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GARUDA INDONESIA will fly to Italy in 2014

President Director of Garuda Indonesia, Emirsyah Satar said Garuda Indonesia is reviewing the opening of flight routes to Italy. If there is no obstacle, Garuda Indonesia plans to fly to Italy on 2014. "Route to Italy the most rapidly will be opened by 2014. There is only one choice, whether Rome or Milan," said Emirsyah.

Emirsyah said, for time being Garuda Indonesia route that have been opened to the European region only Amsterdam, The Netherlands. State-owned airline is still looking at the economic conditions of Europe to add a route to other countries. Garuda Indonesia plans to open a flight route to the five countries, namely the Netherlands, Britain, Germany, Italy and France.

Another consideration is the Garuda Indonesia is still awaiting the arrival of 10 Boeing 777 300 ER. The plan, said Emirsyah, the aircraft began to come next year. "There have been 10 order of Boeing 777 aircraft. Will be empowered to Europe and the Middle East. Direct flight," he added.

Determination of objectives between Rome or Milan will be based on market demand, the city where the most targeted people of Indonesia. "And we see, the Italians whether from Rome or Milan a lot to Indonesia," he continued.

So, he said, opening the route Garuda Indonesia to the number of European countries will not be directly opened simultaneously. The opening of the routethat is closest to London, England. "Not all, gradually. Italy is not the closest. Second is the UK, London town for sure," he added.

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GARUDA INDONESIA - The Best International Airline - in the WORLD

Garuda Indonesia was awarded "The Best International Airline" by Roy Morgan, Australia an independent international research institute which has been operating for 70 years.

Determination of Garuda Indonesia as The Best International Airline was based on research conducted by Roy Morgan from February 2011 to January 2012 against the 3943 respondents, who were asked to give an assessment of the products and services the world's airlines, "said Deputy Managing Director Corporate Communications of Garuda Indonesia, Pujobroto.

Of the 3943 respondents who are users of international air services, there are as many as 91 percent of them saying very satisfied or very satisfied on Garuda Indonesia services.

Pujobroto said, assessment given by the respondents against Garuda Indonesia exceeds the rating of the airline companies of the world. A number of airlines that are sequentially under Garuda Indonesia are Singapore Airlines, Air New Zealand, Emirates, and Cathay Pacific.

Before this, he said, in line with the transformation program and "Quantum Leap" which is currently still being implemented, Garuda Indonesia succeeded in reaching the various achievements such as "The World's Most Improved Airline" by the airline agency, Skytrax, based in London. In addition, he continued, Garuda Indonesia has also been selected as "Turn Around Airline of the Year" by the Centre for Asia Pacific Airlines (CAPA).

Earlier, President Director of Garuda Indonesia, Satar presents, Garuda Indonesia airline fleet will total 154 aircraft by 2015 as part of a program called "Quantum Leap" launched by the state-owned companies.

"Through the program 'Quantum Leap', up to 2015 Garuda Indonesia plans to increase the current fleet of as many as 89 aircraft to 154 aircraft," said Director of Garuda Indonesia, Satar, when receiving the arrival of two new aircraft Boeing 737-800NG and Airbus A330-200 at Soekarno-Hatta Jakarta.

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GARUDA INDONESIA target in 2015

Garuda Indonesia is targeting 35.2 million passengers in 2015.

Emirsyah Satar, president director of PT Garuda Indonesia, said that Indonesia's economy is getting better so that the target would be overtaken. "Target will also need the support infrastructure, such as access to the airport by road and train," he said.

Meanwhile, Garuda Indonesia passenger target this year reached as many as 17 million passengers. Target passengers as much as it is included with the passengers from Citilink.

In order for an aircraft passenger comfort stay awake, PT Angkasa Pura II is currently reviewing the development of Soekarno Hatta airport. "There are land acquisition to expand the Soekarno Hatta Airport," said Tri Sunoko President Director of PT Angkasa Pura II.

Land acquisition is estimated according to the Tri require a land area of ​​830 ha. and expected to require an investment cost of IDR 6-7 trillion. This land acquisition for airport expansion is predicted to be completed in 2014.

Meanwhile, now there are several parties interested in being an investor. "Among these are Airport GMR,GVK Group, Incheon International Airport," said Tri. [Garuda Indonesia target in 2015]

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MANDALA Airlines to operate before the end of this year

PT Mandala Airlines will resume operations before the end of this year's holiday. Funds needed for this plan to reach U.S. $ 250 million, which is to purchase five new aircraft and also rent  five planes.

"We are still identifying the plane. As soon as the existing permission from the government, we follow up. Fly before year-end holidays, so there is a solution offerings," said owner of Saratoga Group, Sandiaga Uno in Jakarta.

The fund has been prepared by Saratoga Group and Tiger Airways are both sourced from internal cash.

Sandiaga Uno said, the Airbus 737 will be the choice to fly back Mandala Airlines. "For the new Airbus 737 around U.S. $ 50 - U.S. $ 70 million. There is a lease as well," he added. As an initial step, the Mandala Airlines will fly the aircraft for the distance in under three hours with domestic and international routes.

For the record, Saratoga Group has a 55% stake in PT Mandala Airlines. Conditional sale and purchase agreement and other legal documents have been signed by Mandala Airlines, Saratoga Group as a financial investor, and Tiger Airways as the strategic investor.

After changing ownership, the Mandala Airlines is expected to implement the business model of Tiger Airways, offering low cost travel to international destinations and domestic.

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LION Air and SRIWIJAYA Air will work on FULL SERVICE carrier

Lion Air plans to upgrade the flight service from low cost carrier into a full-service airlines. For this full service, Lion Air to establish a new subsidiary, PT Space Aviation Service.

General Director of Lion Air, Edward Sirait claimed to have been taking care of the completeness of the business license for this Air Space. "The filing is already running, we are currently completing the documents in accordance with government regulations," said Edward.

Lion Air sees the potential flight for full services is very large. Edward saw its market continues to grow. Because of that, he hopes this Air Space could soon be operational next year. "We are targeting November 2012," he said.

To work on the full market these services, Lion Air will allocate around 10-12 aircraft. Already, it is reviewing the routes to be served. "So the market to be clear," he said.

Sriwijaya Air is also will follow to upgrade their flight service. Vice President Director of Sriwijaya Air Hasudungan Pandiangan claimed to have been collecting documents to transform into full flight carrier. "We are filling but do not propose the SIUP becuase not opening a new company. The name of the airline still remain the same, Sriwijaya Air," explains Hasudungan.

He also admitted it is reviewing the routes to be served. "We are targeting this transformation is completed in mid 2012," he said. So far Sriwijaya Air applying service to its passengers with the concept of medium service. The concept of rule-based medium may only provide a maximum tariff of 90% of the rate above the specified limit. The airline allowed to provide service snacks and beverages.

According to Bambang S Ervan, Head of Communications and Information Ministry of Transportation when the airline moved from medium service to full services without creating a new subsidiary then simply report to the Directorate General of Civil Aviation only. "Then after that the process is published to the public. While to open up a new subsidiary must submit SIUP first, "said Bambang.

The Director General of Civil Aviation Herry Bakti admitted that Lion Air’s SIUP is in the process. As for reports of Sriwijaya Air had not yet received their request for a report to the next grade to full service.

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Saratoga Group became the majority shareholder of Mandala Airlines

Saratoga Group eventually became the majority shareholder of Mandala Airlines. Saratoga Group's ownership by 51% after signing the official documents conditional sale and purchase agreement.

Besides Saratoga, Tiger Airways is also a new ownership of Mandala Airlines with shareholder by 33%. While the remains is owned by unsecured creditors and holders of old shares.

"We were so pleased with the finalization of the documents of this transaction and look forward to Mandala Airlines immediately operational," said one of the founders of Saratoga Group, Sandiaga Uno.

By signing the agreement, the completion of the restructuring of Mandala Airlines closer. Just a note, Mandala Airlines has been serving a five-month due diligence. Mandala still must complete the requirements to mention a number of transactions required. Including the approval Mandala could flyback immediately from Indonesia’s government. This process is expected to take about 90 days before the operation.

"We expect continued to receive government support so that the plan could flyback to the Mandala can be realized immediately," said President Director of Mandala Airlines Air, Diono Nurjadin Diono Nurjadin.

Diono added, after transfer of ownership of the Mandala Airlines, the company will implement the business model of the Tiger Airways Group. Mandala Airlines will offer low cost travel to international destinations and domestic flights within five hours. The type of aircraft to be used post-restructuring is the Airbus A320.

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Merpati Airlines to open two new routes

PT Merpati Nusantara Airlines is now flying farther. The plan, the national airline will open two new routes on 24 August.

Two new routes to be opened is the route of Semarang - Surabaya and Surabaya - Banyuwangi. Commerce Director of PT Merpati Nusantara Airlines Tony Achmad Aulia said the two new routes will be flown once a day for seven days a week. "We will use the MA 60 aircraft each with a capacity of 56 seats," said Tony.

According to Tony, the opening of new routes before Eid ul-Fitr deliberately chose the time when many people travel back and forth. Besides that, the new route is aimed at helping the government break down the traffic jams during Eid ul-Fitr.

Onwards, the two new routes will be maintained despite the home coming Eid ul-Fitr season is over. According to Tony,  the second route potential to be developed to target the people who travel on business between cities in Indonesia.

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Citilink Revision Number of Aircraft

Strategic business unit of PT Garuda Indonesia Tbk, Citilink, revised the number of aircraft to be operated until the end of this year. When originally projected Citilink will operates 15 aircraft, the target is reduced to 10 units.

President Director of Garuda Indonesia, Emirsyah Satar said, it was done because of Garuda Indonesia planes nevertheless grant that during this operation. "Garuda Indonesia’s plane is not suitable for Citilink, due to Citilink’s concept is the low cost carriers (LCC)," Satar said in Jakarta.

The plane which needed by Citilink is the aircraft with a capacity of 180 passengers, while the aircraft owned by Garuda Indonesia is the plane for the premium class with a capacity of 144 passengers. It is considered inefficient.

Therefore, Garuda Indonesia aircraft will not grant to Citilink. "Citilink has decided to operate the Airbus A320, so that Garuda INodnesia’s Boeing Series will be grounded and sold when it's not used anymore," he said.

Emir added that currently it had prepared to make Citilink a stand-alone company. The target is in 2012 has done a spin off.

"We have prepared a business plan that the Ministry of Transportation provide aviation business license this year, the target may spin off next year," he said.

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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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Merpati Nusantara Airlines buy 20 aircraft from PT Dirgantara Indonesia

PT Merpati Nusantara Airlines (MNA) plans to buy 20 aircraft types N-219 from PT Dirgantara Indonesia (DI). This will be started in 2015.

"In our business plan until 2020 there was a need 20 units aircraft with 20 seater. PT DI manufacture it. And, in our meeting, PT Dirgantara Indonesia is able to produce in 2014, 2015 forward, on work," said President Director of PT Merpati Nusantara Airlines (MNA) Sardjono Jhony Ciptokusomo, after attending a meeting with a number of ministries related with PMN, in the Parliament Building, Jakarta, Monday (04/07/2011).

He revealed this as part of the promotion of synergy between the BUMN (Indonesian state owned enterprises). Sardjono would also agree if Merpati Airlines will use domestic products. "If it was say 4 million U.S. dollars per unit, then approximately 80 million dollars," he added.

For these funds, he could not say from which source. Purchase this plane will not use the funds obtained from the PMN (State Capital) amounting to Rp561 billion. But, he said, the intention is the first thing.

Purchase of 20 units of aircraft is expected to be fulfilled in three years, with seven aircraft per year. The aircraft is planned to use by Merpati Nusantara Airlines further reach out to the border regions. "So that the communities in the border areas do not feel isolated, do not feel left out," said Sardjono.

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MANDALA Airlines will fly back on June

Finally, PT Mandala Airlines will back to operate immediately. The airline will soon fly again in June.

President Director of PT Angkasa Pura II Tri Sunoko claimed to have received a report from Mandala Airlines. "They said Mandala will fly again in June," he said.

Tri added that Mandala Airlines will occupy back Terminal III of Soekarno-Hatta Airport. However, Tri claimed not to know which type of aircraft will be operated by Mandala. "Clearly, we ready to prepare the airport for the arrival of the Mandala plane," he explained.

Director of Air Eligibility and Operation of Aircraft, Yurlis Hasibuan said that  have not obtained a registration statement of the Mandala plane yet. However, he said, Mandala opportunity to fly is still very large. "SIUP still valid, just arrange a new routes and prepare the aircraft," he said.

According to Yurlis, if Mandala Airlines fly again, they will evaluate the Air Operation Certificate (AOC) who had submitted the Mandala since stopped operating in January. "AOC is likely to change because of the route and the aircraft must be tested before its feasibility," he explained.

After testing is completed, the new Mandala can fly commercially. Just to refresh memories, Mandala Airlines stopped flying since January 13 due to financial problem.

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Merpati Airlines fall, this was the fifth plane crash of Chinese production

The fall of Merpati Airlines, MA-60 aircraft to the waters of the Kaimana, West Papua, on Saturday (7 / 5) is the fifth time for an aircraft accident made in China. This accident is also the most fatal accidents have ever experienced MA-60 aircraft since the first time operated by Sichuan Airlines in 2000.

The first accident occurred on January 11, 2009. At that time, Xian MA-60 belong to Zest Airways flight 865 with 22 passengers and 33 crew members have undershot on Runway 06. The accident occurred when the plane landed at Godofredo P Ramos Airport, Philippines. Landing gear and propeller aircraft suffered severe damage. Three people were injured. However, there were no fatalities.

The second accident occurred on June 25, 2009. At that time, Xian MA-60 belong to Zest Airways flight number 863 with 54 passengers and 5 crews have overshot on landing at Godofredo P Ramos Airport. No injuries in the accident.

The third accident occurred on November 3, 2009. Xian MA-60 UM-239 owned by Air Zimbabwe hit five wild boar during takeoff from Harare International Airport. The plane managed to stop the takeoff process. However, plane was badly damaged in a collision.

Meanwhile, on December 7, 2010, the fourth accident occurred at Rangoon International Airport. Xian MA-60 aircraft at that time also skidded while landing.

The latest accident and the worst crash is Merpati Airlines MA-60 type in Kaimana, West Papua, on Saturday (05/07/2011) afternoon. The plane crashed and sank.

PT Merpati Nusantara Airlines (Merpati) ever stop operating (grounded) MA-60 aircraft made by Xian Aircraft of China following the damage to the rudder (wing section) back of the plane.

"Grounded we do because there was a crack on the rear wing," said (late) Director of Merpati Airlines, Bambang Bhakti after a hearing with Commission XI DPR-RI at the parliament building on Wednesday (10/6/2009).

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Garuda Indonesia Airways grab Singapore Airlines MARKET

The airline Garuda Indonesia Airways began to seize market foreign airlines, including Singapore Airlines and Malaysia Airlines who could fill in the gaps for the overseas Garuda Indonesia flight routes.

Currently, several international flights such as to Japan, Seoul, Hong Kong, and China, could be said Garuda Indonesia has become the primary choice in upper secondary market. Average monthly load factor according to Director of Marketing and Sales Arif Wibowo, reaching more than 80%.

"Only Japan has decreased by about 15% because of the earthquake and tsunami a while back. But we believe this market will soon recover. Japan is one of a solid international routes," said Arif in Toulouse, France, when to pick up a new aircraft of Garuda Indonesia, Airbus 330-200.

Met separately in Toulouse, President Director Danny Limarga Shilla Tour, said of a thousand inbound tourists per year that he signed, almost all using Garuda Indonesia, except for a flight to Amsterdam. "Frequency of Garuda Indonesia flight to Amsterdam was still a little. But for countries in Asia, Garuda Indonesia has become the primary choice. For Shilla Tour is perfect because we were working on upper middle-market tourists," said Danny. In the future, Danny hoped Garuda Indonesia could increase flight routes to countries in Europe. Also strengthening the flight route in Asian countries.

The same hope is presented by Eka Moncarre, Managing Director of Panorama Tour of Europe. Eka explains, the French tourism market relatively unaffected by the world financial crisis. "They rarely play the stock, so not too affected. That's why, demand for travel to Indonesia, especially Java and Bali continue to rise, "said Eka at Paris.

In 2010, the number of French tourists to Indonesia, which is handled Panorama reach 100 thousand people. From the number, 70% of them targeting the island of Java and Bali. "That's why, we hope that Garuda Indonesia can fly longer of Paris routes. Tourists market in this country is big enough," said Eka.

By the closing of Paris track around 1994, the current French tourists who came to Indonesia was forced to bundle with other foreign airlines such as Singapore Airlines and Malaysia airlines. "This is related to additional tariffs, due to use of Garuda Indonesia, the first tourists to be flown to Amsterdam. That is why, we sincerely hope Garuda again fly over Paris," said Eka.

Arif Wibowo said the management of Garuda Indonesia already had plan to open new routes in several Europe countries, including Paris, France. To support the plan, Garuda Indonesia has ordered the aircraft that can serve long-distance direct flights.

Vice President of Marketing Garuda Indonesia, Don JP Bustan, the French gave similar statement. Management of Garuda Indonesia, he said, did have a plan to immediately fly several European countries, including Paris, France."Routes to be flown are in the study. We still measured the needs work on the main market in business class, including the leisure market with more economic tariffs," he said.

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Garuda Indonesia airlines needs 120 NEW pilots per YEAR

Garuda Indonesia airlines require at least 120 new pilots per year. The pilots are for manning the fleet which continues to grow and replace the retired pilots. As stated by Garuda Indonesia's vice president of Flight Operations, Capt. S Samad.

"Last year we added 24 aircrafts. While this year we will add 11 planes: 9 aircrafts of B737-800 NG and 2 aircrafts of A330-200, "he said.

According to Samad, based on the Quantum Leap program, until 2015 Garuda Indonesia requires an additional 800 pilots. By 2015, the number of aircraft used by Garuda Indonesia planned totaling 116 units.

Currently, the pilot of Garuda Indonesia amounted to 820 personnel with 30 of them are pilots from overseas. Garuda Indonesia has a policy of 1:9 or an aircraft operated by 9 pilots, or 4.5 sets.

To meet the needs of pilots, Garuda Indonesia in collaboration with the two flight school. Namely, Sekolah Tinggi Penerbangan Indonesia (STPI) in Curug and Bali International Flight Academy (BIFA) in Bali. Each school is supplying 60 pilots per year.

AirAsia plans to INCREASE flights frequency to SINGAPORE

The airline company, PT Indonesia AirAsia plans to increase frequency of flights from Jakarta and Denpasar to Singapore. Adding of one-time flight to Jakarta to Singapore route that became six times a day. As for the route Denpasar - Singapore flights increased by one so that it becomes four times the flight.

"The addition of this flight frequencies will effective on 20 April," said President Director of Indonesia AirAsia, Dharmadi.

The addition of frequency to Singapore, according to Dharmadi, because of the many customer requests to go to Singapore. "Singapore became one of our customer's favorite route, as well known as a shopping paradise and city tour," he said.

Related to that, Director of Marketing and Distribution AirAsia Widijastoro Nugroho said, AirAsia will offer special prices to travel to Singapore.

The special prices that offer by AirAsia is start from IDR 149,000 for the Jakarta-Singapore route and start from IDR 199,000 for the Denpasar - Singapore route. "This will be valid from 23 to 27 March 2011 with scheduled flights from 20 April - 10 November 2011,"said Widijastoro.

INDONESIA Airlines Ask for EXEMPTION to Surcharge RULES

The Indonesian Air Carrier Association has called on the government to allow domestic airlines to add fuel surcharges to airfares to reflect rising oil prices that may affect their operating costs.

Tengku Burhanuddin, secretary general of the association, also known as Inaca, said jet fuel prices have hovered between IDR 7,000 and IDR 8,000 (US$0.80 and US$0.91) per liter, but outside forces such as Middle East political crisis could send prices above the government’s price assumption.

Transport Ministry regulations allow airlines to impose surcharges if jet fuel prices exceed IDR 10,000 per liter and carriers experience a 20 percent rise in operational costs for three successive months.

Not imposing surcharges would be a burden to airlines already struggling to stay profitable, Tengku said. “If we are allowed to impose it now, it will be a lot easier to maintain our profit margin,” he said, adding that each airline has different calculations on the surcharges needed to cover operational costs.

Fuel typically makes up 30 percent to 40 percent of an airline’s operational costs.

Brent crude prices surpassed US$116 per barrel on Thursday after forces loyal to Libyan leader Muammar el-Qaddafi bombed oil industry infrastructure, inflicting damage on the country’s exporting capacity, Reuters reported.

Last year, the Business Competition Supervisory Body (KPPU) accused the country’s nine largest airlines of using fuel surcharges to boost revenue even though fuel prices had declined. It leveled IDR 80 billion in fines and IDR 504 billion in compensation to customers against the carriers.

However, the Central Jakarta District Court struck down the KPPU’s ruling last month, saying there was no evidence of price-fixing between the airlines.

Elisa Lumbantoruan, finance director of flagship carrier Garuda Indonesia, said the airline had raised its economy class fare 5 percent and increased seat allocations for business and executive class to cope with rising fuel costs.

“Because we don’t hedge our fuel supply, we have to deal with this by increasing ticket prices and adjusting seat allocations,” he said. “We haven’t made any plans to add fuel surcharges.”

In 2007, when oil prices reached US$140 per barrel, Elisa said airlines began adding IDR 150,000 in fuel surcharges to airfare for the Jakarta-Surabaya route, for example.

Edward Sirait, general director of Lion Air, said his company was also increasing the number of seats in the executive class to compensate for rising fuel prices. Dharmadi, president director of AirAsia Indonesia, has said the airline could offset rising fuel prices of up to US$130 per barrel with ancillary revenue.

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WINGS Air open MALANG-DENPASAR flight route

The Indonesia airline company, Wings Airs, a subsidiary of Lion Air is starting open their flight route service from Malang - Denpasar, as an answer for the market need for this on the tourist route of these two destinations.

Wings Air uses ATR 72-500 aircraft with a capacity of 72 seats, which is said to have equipped with modern cabin.

Andi Burhan, Wings Air general manager explained, the flight is seven days a week, departing from Abdul Rachman Saleh Airport, Malang at 14:25 with flight number IW 1841, and departed from the Ngurah Rai Airport, Denpasar at 14.00.
This ATR aircraft is a new aircraft purchased from Avions de Transport Regional (ATR) manufacturer, which also manufactured turboprop-powered aircraft in France.

The number of aircraft would be ordered and will be operated by Wings Air is 30 aircrafts, has started operation since January 2010. "Up to February 2011 has been received and operates ten aircrafts, and five more planes is planning arrive until August 2011," said Andi Burhan.

The Malang-Denpasar route had been waiting since 2005, when the Civil Airport Abd Saleh Malang re-operated facilities that utilize the Air Force at Air Field Saleh Abd. "Malang always expect there is a direct route to and from Denpasar flight, as well as to and from Yogyakarta," said Head of Transportation Department of Malang Regency, Nasarudin Selian.

This is to confirm the Malang ambition along with it’s satellite city Kota Batu and Malang regency to assert its identity as a city or region of national and international tourist destination, besides Yogyakarta and Denpasar.

"We always hope that overseas tourists will travel  the Malang - Denpasar flight route, before entering Yogyakarta city, after entering Indonesia through the door of Denpasar. Similarly, on the contrary, from Yogyakarta or Jakarta to Denpasar via Malang," said Nasarudin.

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WINGS Air purchase 15 units of ATR 72-500

Wings Air confirmed to purchase 15 units of ATR 72-500 which came from the aircraft manufacturer Turboprop An Alenia Aeronotica and EADS joint venture. Purchasing of 15 aircraft is a continuation from the year 2009 where Wings Air ordered 30 units of ATR aircraft consists of 15 units is a definite purchase and 15 units is the additional purchase option.

"We are consolidating a partnership with Lion Air and Wings Air, and we are pleased to witness the success of one of the leading company in Southeast Asia," says CEO ATR Filipo Bagnato.

Wings Air hopes, this year the aircraft will be received and operated to reach 15 units. With this addition, Wings Air become the the largest company which use ATR 72-500 aircraft in Southeast Asia.

During this time, Wings Air is using this type of aircraft to fly routes such as Sumatra, Java, Bali, Nusa Tenggara, Sulawesi and neighboring countries. This aircraft type is suitable to serve routes in remote areas as well as a feeder for the airline Lion Air.

Wings Airs first time operating ATR 72 aircraft in Indonesia in January 2010 and until February 2011 there have been about 10 aircrafts. It is expected that five more aircrafts will gradually be received until August 2011.

Lion Air President Director who is also Commissioner of Wings Air, Rusdi Kirana said the increase in the number of ATR fleet is expected to contribute to national economic growth.

"ATR aircraft became very popular in Indonesia because they play a key role in business development and tourism, as well as linking the islands of Indonesia," he concluded.

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