Google

ASEANAFFAIRS
Sign up | Log in

    ASEAN PROFILES

  ASEAN KEY DESTINATIONS

Home  >>   Daily News  >>   Indonesia News  >>   Aviation  >>   Budget carrier meets Indo middle class needs
NEWS UPDATES Asean Affairs           13  July 2011

Budget carrier meets Indo middle class needs

Related Stories

March 26, 2011
Indo airport operator hopes to list on stock exchange

February 22, 2011
AirAsia Indonesia looks at fourth-quarter IPO

November 26, 2010
AirAsia Indonesia to Surpass Malaysia Business

September 23, 2010
Indonesia delays Garuda's share sales until January 2011

August 31, 2010
Airport woes in Indonesia

April 29, 2010
Indonesia, Japan sign air transport deals

 

April 10, 2010
Indonesia reminds Myanmar junta of need to hold tranparent elections

Punctuality may be AirAsia's other strong point compared to Indonesia's own budget airlines. Lion Air (for example) has a national schedule that is never on time, and many others (including Garuda) continue to disappoint Indonesia's growing middle-class.

The Lion Air executive's comment here proves how the domestic companies disregard service excellence: "Why should we worry about our competitors?"

Since there are middle-class Indonesians who expect world-class service from domestic carriers, the Malaysians have stepped in and taken that upper-crust segment.

Punctuality and service are what the foreigners offer, so Indonesian companies should at least keep up... if not exceed them!

Budget carrier Indonesia AirAsia says it expects its passenger numbers to skyrocket 15 percent this year with the addition of new aircraft ahead of a possible listing later this year.

The local offshoot of Malaysian airline AirAsia appears on track to smash the target, reporting that it had flown 2.35 million passengers in the first half the year, up 28 percent on the same period in 2010. Total passenger numbers for last year were in turn up 13 per cent on 2009.

The Indonesian carrier has previously flagged plans to seek up to $200 million in an initial public offering later this year, in which it will sell a 20 percent stake in itself.

"We're optimistic that we can fly 4.5 million passengers this year because the Indonesian domestic market is expected to keep growing until 2015," said Dharmadi, IAA's president director.

It was last week revealed that AirAsia was purchasing 300 Airbus A320neo aircraft in a deal valued at $27 billion. Dharmadi said there were no plan to revise IAA's expansion plan in light of its parent company's growth.

IAA bought three aircraft in 2010, two this year, and will add another five next year, he said. IAA currently has 20 aircraft.

Dharmadi said the airline planned to open new routes, but he declined to reveal details. Currently, IAA serves 52 domestic and international routes.

The aircraft expansion has helped the airline to post a profit of Rp 474 billion ($55.5 million) last year, more than four times the 2009 figure. Revenue climbed 37 percent to Rp 2.8 trillion. Dharmadi reiterated a March prediction that revenue would rise 15 percent this year.

"There's a huge potential for low-cost carriers in Indonesia,'' Dharmadi said. "Last year, the number of airplane passengers was recorded at more than 50 million people, and we expect this to increase by about 60 percent to 77.6 million people in 2015."

In order to offset fuel costs, the airline plans to hedge its purchases. It also sought a fuel surcharge in May.

 


Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates
Contact: marketing@aseanaffairs.com

Comment on this Article. Send them to  your.views@aseanaffairs.com

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
 
or
submit your comment in the box below
Name

Name


Email

Email



1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code



 
Today's  Stories    13  July  2011 Subsribe Now !
  • Obama returns to Indonesia
Subcribe: Asean Affairs Global Magazine
• Budget carrier meets Indo middle class needs Asean Affairs Premium
 • Activists call for electoral probe
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

 
 • Malysia begins amnesty for foreign workers
 • FDI slows in Philippines
 • Singapore tackles trafficking
 • International earnings rise at SCG
• Pheu Thai move gets attention
p

Asean Analysis    13  July  2011

Advertise Your Brand
• US, Euro and now China concerns hit Asian markets Sponsor Our Events

Asean Stock Watch    13  July  2011 

 
• Asean Stock Watch-June 13 p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan

ASEAN  ANALYSIS

This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

 

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand
asean@aseanaffairs.com