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

AirAsia NEW ROUTES: Singapore and Makassar Makassar-Kinabalu

AirAsia Indonesia will make Makassar as a hub for international routes from eastern Indonesia, with the opening of routes to explore Makassar - Singapore and Makassar - Kota Kinabalu.

Chief Executive Officer of AirAsia Indonesia Dharmadi said that with the opening of a sales office in Makassar is expected to start making capital of South Sulawesi as an international aviation hub, in addition to continue to develop domestic routes.

"We hope that soon we'll be the permission for opening the route to Singapore, Makassar could be a hub for international routes because of the closer here, including the Kinabalu," he said after opening a sales office in Makassar AirAsia Indonesia, Wednesday (20/2).

Dharmadi a former pilot, said after later getting permission Makassar - Singapore and Makassar - Kinabaru, the route can be connected with international routes have been opened by AirAsia Berhad are like Kuala Lumpur - Jeddah.

"So later on if it is open, it can be connected with a network of AirAsia, so from Makassar - Kuala Lumpur - Jeddah. Anniversary of Makassar is not too far either he said.

Nevertheless, the company also remains focused on domestic routes such as to Manado, Surabaya and Bali. The opening of the sales office located at Jalan Boulevard, Ruko Ruby, Panakukkang, Makassar, was inaugurated by national leaders as well as former Vice President Jusuf Kalla.

Sales office is the ninth of the total Indonesia AirAsia sales offices that are scattered in Jakarta, Bandung, Medan, Yogyakarta, Bali and Surabaya. Indonesia AirAsia is currently serving 70 routes, which are connected through six hubs namely Jakarta, Bandung, Bali, Surabaya, Medan and Makassar.

From the Makassar hub, already operates routes Makassar - Kuala Lumpur four times a week so it will be changed to daily, while for domestic routes from Makassar hub currently serves Makassar – Jakarta twice per day, Makassar - Balikpapan once, and at 1 March serving Bali, Manado, and Surabaya.

He said the government of Indonesia and Singapore also recently signed a bilateral agreement about the airline industry so that it can be used by the company and other airlines to explore the route to the land of the lion. "Basically, we have developed a connection from hub to hub, for example, from the hub of international routes to London and Singapore for example. Makassar location support," he said.
 
Dharmadi said that until now the company operates a fleet of some 22 aircraft and Makassar hub of which is allocated two planes. He said the addition of the aircraft when it is supported also by the policy of the company aircraft rental. This year the company will add nine aircraft so that its fleet to 31 aircraft.

AirAsia Indonesia, he said, aims to add 10 aircraft per year in the next few years in line with the company's efforts in developing business expansion. This year the company expects the number of passengers could reach 8.5 million - 9 million compared with last year's 6 million passengers.

In that occasion, former Vice President who is currently the Chairman of the Red Cross Indonesia Jusuf Kalla said there are several ways to measure the development of an area and two of which productivity and facilities.

But he said if the area is already well in terms of productivity and connectivity facilities to be supported by other regions.

"Economic growth in Makassar is higher than the national economic growth of 6.2%, while the Makassar only 9% due to productivity as well, so this Makassar airport facilities in terms of the center position for a flight to the East and the West," Kalla said.

South Sulawesi Provincial Government Assistant Public Welfare Charity Natsir added just feel if AirAsia makes Makassar as an international aviation hub of eastern Indonesia. "In the last five years our economic growth above 8%, 8.46% to be exact, while we also keep inflation at the level of 3.2% is the lowest compared to other regions," he said.

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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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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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 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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LION AIR as the WORST airline in the On Time Performance

Lion Air was recorded as the worst airline in the timeliness - the on time performance (OTP) in Indonesia. Based on the results recap of the Ministry of Transportation during the I quarter of 2011, the Lion Air’s OTP average only reaches 66.45%.

According Ministry of Transportation, this is not the first time of the airline that owned by PT Lion Mentari Airlines has record a poor performance in the OTP. During January - April 2011, the Lion Air on time perfomance had reached a low of 54.30% in February. Whereas the highest achieved in April OTP at 77.30%.

Batavia Airlines OTP rate slightly better, reaching 68.83%. While the best OTP is still held by Garuda Indonesia 86.98%, while the OTP of Merpati Airlines 75.60%, Sriwijaya Air 74% and AirAsia 71.96%.

Director General of Civil Aviation, Herry Bakti, ask the airline who has punctuality rate into a bad category to improve its performance so that it can reach 80%. "They have to arrange the schedule according to ability," he said.

Herry said, airlines are often late is usually caused by high frequency of flights, but not matched with the fleet and adequate human resources. As for Lion Air, Ministry of Transportation has given sanction in the form of six-unit reduction in the frequency of plane flights.

Flight Observer, Ruth Hannah Simatupang, argues, to improve the on time performance, the airline should work with other airlines during a delay or cancellation. "So far, the only Garuda Indonesia has did it and it was for international routes," said Ruth..

Edward Sirait, General Director of Lion Air, pledging it will continue to improve the on time performance. Since reducing the frequency of flights, the OTP has increased. "Our last July OTP 76%," said Edward. In addition to reducing the frequency, Lion Air also increase the OTP by adding ground time from 35 minutes to 45 minutes.

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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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