Indonesia’s Lion Air to Buy 230 New Boeing 737s in $21.7b Deal

Jakarta Globe, November 17, 2011

Indonesia’s Lion Air has agreed to buy 230 Boeing 737 aircraft with a
 list price of $21.7 billion, the White House said on Thursday, touting the
sale as the US firm’s biggest-ever commercial order. (Antara Photo/File)   

     

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Nusa Dua. Indonesia’s Lion Air has agreed to buy 230 Boeing 737 aircraft with a list price of $21.7 billion, the White House said on Thursday, touting the sale as the US firm’s biggest-ever commercial order.

The deal was announced soon after President Barack Obama touched down in Bali for the East Asia summit on the final leg of a regional tour partly aimed at drumming up markets for US products at a time of slow growth back home.

The White House also highlighted other deals, some already announced, including the sale of eight Boeing 777 planes to Singapore Airlines and an order for Sikorsky Black Hawk helicopters by Brunei’s Ministry of Defense.

Officials said the Lion Air order was for 201 Boeing 737MAX aircraft and 29 Next Generation 737ER planes.

“The President will join a signing ceremony between the representatives of Boeing and Lion Air on November 18,” a White House statement said.

“With 230 airplanes at a list price of $21.7 billion, this order represents the largest commercial airplane agreement ever for Boeing.”

Aviation Week reported on November 4 that Lion Air, Indonesia’s largest privately-held carrier, was seeking new narrow bodied aircraft and was considering 737s and the European-made Airbus 320.

The White House also said that the deal included options for a further 150 aircraft valued at $14 billion, which could put the eventual deal at $35 billion.

Officials said that the deal would support 110,000 American jobs at Boeing and at suppliers throughout 43 American states, at a time of 9.0 percent unemployment which is clouding Obama’s 2012 reelection prospects.

The White House also highlighted another big Boeing deal, the sale of eight 777-300ER jets to Singapore Airlines worth $2.4 billion which will support a further 11,000 US jobs. That contract had already been made public.

Indonesia’s Garuda Airlines meanwhile has signed a contract to buy 50 CFM56 General Electric engines worth $1.3 billion, the White House said..

And Sikorsky will sell Brunei 12 Blackhawk S-70i helicopters worth $325 million, the White House said, adding that the total value of all the deals was $25 billion.

Agence France-Presse

Indonesia's Lion Air has placed the largest ever commercial airplane
order in Boeing's history, valued at $21.7 billion. (AFP Photo) 

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Garuda Orders 25 Airbus A320 Planes to Replace Boeing 737 Fleet

Jakarta Globe, Femi Adi | June 22, 2011

PT Garuda Indonesia ordered 25 Airbus SAS A320s, including 10 A320neos, as it replaces a fleet of Boeing Co. single-aisle aircraft at its low-cost unit.

The contract, worth about $2.2 billion at list prices, also includes options for another 25 A320neo planes, Garuda Chief Financial Officer Elisa Lumbantoruan said by e-mail today.

The Citilink unit, which operates five 737s, will receive the new Airbus aircraft from early 2014, he said.

The deal builds momentum for the A320neo after Toulouse- based Airbus yesterday won 90 orders for the plane on the first day of the Paris Air Show.

Boeing is deciding between joining Airbus in offering a revamped single-aisle aircraft with new engines and developing an all-new model.

Garuda, Indonesia's biggest carrier, picked the Airbus planes because of lower operating costs and because they were more quickly available than Boeing models, Lumbantoruan said.

Slots for the 737 are sold out until 2016, Jim Albaugh, the head of Boeing's commercial-plane unit, said in an interview yesterday.

Airbus markets the A320neo as 15 percent more fuel efficient than current planes. Deliveries of the new aircraft are due to begin in 2015.

Citilink also plans to add four leased Airbus A320s this year to support traffic growth that's three times as fast as last year, Garuda said earlier this month. The unit flies to domestic cities including Jakarta, Surabaya and Denpasar.

Bloomberg

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Lion Air opens new terminal at Balikpapan

The Jakarta Post | Thu, 09/02/2010 10:36 AM

BALIKPAPAN, East Kalimantan: Lion Air opened a new terminal at Sepinggan International Airport in Balikpapan on Wednesday.

Terminal B, which cost US$11 million and can hold 600 passengers, stands on a 2,400 square meter plot adjacent to Terminal A.

The old terminal hosts carriers operated by Garuda, Batavia, Mandala airlines and other small flight operators.

“The facilities in Terminal A and Terminal B are the same. The only difference is in atmosphere. Terminal A already looks old and crowded. Terminal B will reduce 40-50 percent of Terminal A passenger load. Lion Air contributes 40-50 percent of the airport’s 3,000 daily passengers,” said Mardani, airport operator Angkasa Pura I general manager.

Sepinggan International Airport said it expected a 12 percent increase in passengers from Sept. 3-17 during the peak of Idul Fitri.

Lion Air also announced additional flights for its routes from Balikpapan to Makassar, Surabaya and Yogyakarta. — JP

Garuda orders six Airbus planes for US$1.15 billion

The Jakarta Post, Jakarta | Thu, 07/22/2010 11:12 AM

State-owned airline PT Garuda Indonesia placed an order with Airbus SAS at the Farnborough Air Show for six A330-200 wide-body jets in a deal valued at US$1.15 billion, the airline said in a statement Wednesday.

The planes are expected to arrive in Indonesia in the fourth quarter of 2012 and will supplement four A330-200 and six A330-300 Airbus planes currently used by Garuda.

The six aircraft will be equipped with the Trent 700 engine from Rolls-Royce and serve the airline’s routes in the Asia-Pacific region, the Middle East and Europe, said Garuda.

“Since we started operating the plane last year, the A330-200 has proven an excellent performer, particularly in terms of economic and operational efficiency,” said Garuda president and CEO Emirsyah Satar.

He added that the A330-200 would be the right choice for the airline’s medium-range routes.

Tom Enders, president and CEO of Airbus, said the company was pleased to revive a long-term relationship with Garuda. He added the A330 excelled in efficiency compared to other airlines in its class.

On Wednesday, the third day of the airshow, Airbus also booked an $1.49 billion order for seven A330-300 wide-body jets from Thai Airways International Pcl, Thailand’s biggest airline.

Boeing said it booked an order Wednesday for two 777 wide-body aircraft from Qatar Airways Ltd and for two 777-200LR wide-body aircraft from Air Australia.

Bloomberg reported Wednesday that Airbus and Boeing were almost tied for new orders and had racked up collective orders for 243 aircraft valued at more than $23 billion.

Boeing won 121 orders worth $11.6 billion as of Tuesday while Airbus has sales agreements for 122 jets valued at $11.7 billion, excluding 50 A320s ordered by Chile’s LAN Airlines and subject to confirmation.

Orders at this year’s event are more than three times the 78 announced at last year’s Paris Air- show, with which the Farnborough event alternates. The tally trails the 373 firm orders announced by Airbus and Boeing in 2008.

US helping Indonesian air force improve aircraft safety

Antara News, Friday, March 19, 2010 17:29 WIB

Jakarta (ANTARA News) - The US Embassy`s Office of Defense Cooperation (ODC) is assisting the Indonesian Air Force improve the safety of its aircraft, the US Embassy here said in its webiste.

The Indonesian military and three US Air Force Technical Coordination Groups (TCG) have recently conducted reviews on F-5, F-16, and C-130 aircraft. This was the first in-country review in 2 years, and the most in depth ever.

Team members traveled to Bandung, Halim, Madiun, and Malang Air Force Bases to work directly with air crews and maintenance teams to help them remedy some of their long-standing maintenance problems.

The TCG, a team of technical experts, come from various US Air Force Bases within the United States. They travel worldwide to assist countries resolve critical maintenance issues, and to brief on the latest innovations in the world wide fleet of Lockheed Martin built C-130 `Hercules` aircraft, F-16 `Fighting Falcons,` and Northrop`s F-5 `Tiger.` The Indonesian Air Force Hercules aircraft were all built between the 1960`s and the mid-1980`s.

Although the US sanctions with Indonesia were officially lifted in 2005, maintenance issues have been a challenge for the Indonesian military. In recent years, the ODC at US Embassy - Jakarta has been cooperating with the Indonesian Air Force.

"Bringing the TCG teams back is one of the first steps," Lt. Colonel Alex Thagard, Director of Air Force Programs at ODC, explained. "Many of the programs and platforms used by the Indonesian Air Force require immediate updates, in order to keep pace with changes that have occurred within the US Air Force over the last two decades."

The ODC is also cooperating with the Indonesian Air Force and the US State Department to provide grant funding to send their C-130`s to the United States for Periodic Depot Maintenance (PDM) inspections.

The first airplane for inspection and maintenance is scheduled to fly to the US in June.

PTDI to hand over aircraft to S Korea by end of 2010

Antara News, Saturday, January 9, 2010 07:41 WIB

Bandung (ANTARA News) - State aircraft manufacturer PT Dirgantara Indonesia (PTDI) is scheduled to hand over one of four CN-235/ MPA (Maritime Patrol Aircraft) ordered by South Korea, by the end of 2010.

"Four CN-235/ MPA aircraft are currently under construction by PTDI to meet the South Korean order. One of the planes would be handed over to South Korea by the end of 2010," PT Dirgantara Indonesia`s chief spokesman Rokhendi said in Bandung Friday.

He said the four CN-235/MPA planes are ordered by South Korea under a contract signed in 2008 at a total cost of 94.5 million US dollars. The production of the four aircraft would be completed in 2012.

"The planes will however be handed over to the South Korean side in stages," Rokhendi said.

Rokhendi added that the MPA planes will join the South Korean maritime police.

South Korea has been using the PTDI-built CN-235 planes, including two are of the VVIP version.

The CN-235/ MPA planes are the latest version for maritime patrol operations, and are equipped with radar to detect ships sailing below.

The military version of the CN-235 planes is also equipped with anti-submarine torpedoes and other special arms.

"The MVA version has become particularly popular to countries with vast territorial seas," Rokhendi said.

In addition, PTDI has also received an order for three CN-235/ MPA planes from the Indonesian navy under a contract signed in December 2009.

"The first plane, the construction of which was started this year,will be handed over in 2011," Rokhendi said.

In the meantime, the first CN-235/ MPA produced by PTDI had already been handed over to the Navy in 2008. The plane modified from the CN-235, is very suitable for marine patrol and for personnel transportation.

PTDI is also still building three Supar Puma helicopters ordered by the Indonesian Air Force. Super Pumas are only one tipe of the choppers built by PTDI.

"PTDI is currently producing Super Puma and N-Bell choppers, while NBO-105 choppers are no longer produced as the license with Messoshmit Bolkow Blohm (MBB) has expired," he added.

Flight route cooperation

Antara News,

The President Director of Garuda Indonesia, as the country`s flight carrier, Emirsyah Satar, (center) and KLM CEO President Peter Hartman (left) and KLM Country Manager Axel Colen (right) are exchanging replica of aircrafts when signing GIA-KLM cooperation document in Jimbaran, Bali, Tuesday (Dec 8). The two airlines companies will cooperate as chosen flight frequency addition of Singapore-Amsterdam route managed by KLM. (ANTARA/Yudhi/Eliswan/C)

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Merpati prepares fund for leasing new planes

Nani Afrida, The Jakarta Post, Jakarta | Wed, 11/11/2009 3:15 PM

Merpati Airlines, revealed Wednesday that the company will lease seven ATR-72 aircraft in the first quarter of 2010, costing US$80,000- $90,000 each per month, and that it planned to further lease a total of 22 planes by 2011.

“We will start with 7 planes in the first quarter of 2010 first. Hopefully by the beginning of 2011 we will lease all of 22 planes,” Merpati President Director Bambang Bakti told reporters at the office of state ministry for state enterprises in Jakarta.

He said that the company had allocated a budget for leasing those planes, which are from France, at about Rp 1 billion per aircraft per month.

“We also have prepared Rp 3-5 billion as additional an budget per aircraft for training for pilots and co-pilots, technicians, stewardesses, including maintenance and flying approval,” Bambang said.

Merpati is targeting to increase its routes from 150 to 200 routes using the new armada. The company also plans to create a hub, which will provide flying services to remote areas for its consumer.

Garuda to spend $100m on expansion, new aircraft

Nani Afrida, The Jakarta Post, Jakarta | Tue, 11/10/2009 12:38 PM

Garuda Indonesia will spend US$100 million next year as part of its five-year expansion plan, which aims to increase the national flag carrier's fleet from 67 to 116 aircraft by 2014, to serve 27 million passengers.

"We plan to spend $100 million in capital expenditure in 2010 to buy more planes as well as to fulfill Garuda's other operational expenditure," Garuda finance director Eddy Purwanto told reporters on Monday.

He said Garuda still requires yet more capital to improve its infrastructure to provide its passengers with wider and better services.

If it manages to achieve this expenditure target , then it will be the third time the airline spent has $100 million in capital expenditure or more in one year,. It also spent over $100 million on capital expenditure in 2008.

The 2009 capital expenditure (so far) used in part to purchase new Airbus aircraft from Toulouse in south western France and from Boeing in Seattle in the United States.

Next year's proposed spending will be part of the airline's ambitious five-year expansion program to make it not only the largest airline in the country, but also one that can compete with its regional rivals.

On Monday, Garuda received one new Airbus 330-200 and one new Boeing 737-800.

Garuda has ordered 10 new Boeing 777-300ERs and 50 Boeing 737-800s. Previously, the company has received three Airbus 330-200s and one Boeing 737-800.

"Until today, we have about 67 aircraft. So, by 2014 we will be targeting to have at least 116 aircraft," Garuda president director Emirsyah Satar said, adding that the expansion program called for the modernization and revitalization of the Garuda aircraft fleet.

With this larger fleet, Garuda will be able to strengthen and expand it regional presence, flying more routes and with greater flight frequency.

"We will increase our routes and our increase the number of flights from 1,700 times per week in 2009 to 3,000 times per week in 2014," Emisyah said.

He said that the company was targeting to serve 27 million passengers by 2014, up from 10.1 million passengers recorded in 2008.

Emirsyah is confident the company would be able to achieve its operational targets and make Rp 3.75 trillion ($397.5 million) in profits by 2014.

In 2008, the airline booked Rp 669 billion in profits, out of total revenue of Rp 19.4 trillion.

For this year, Garuda has set a minimum 10 percent growth target for net profits compared to a year earlier. In the first half of this year, net profits stood at Rp 612 billion.

The company is now preparing to sell 40 percent of its stake though an initial public offering (IPO) next year (in 2010), in a process Garuda expects to bring in $300 million to $400 million in proceeds.

"Our target is still on these figures," he said.

The planned IPO is part of a debt restructuring agreement between the company and its creditor Bank Mandiri to settle a previously unpaid debt of about $100 million.

Garuda To Lease 8 Jetliners

The Jakarta Globe, Janeman Latul & Yessar Rosendar, February 21, 2009

State-owned airline, PT Garuda Indonesia, expects to sign a lease agreement on Mar. 3 with a Middle Eastern company to enable the 59-year-old carrier to lease 8 new Boeing 737-800NGs worth up to $360 million, Emirsyah Satar, Garuda’s CEO, told the Jakarta Globe. 

However, Emirsyah declined to release the name of the leasing company. Garuda’s original plan called for the airline to lease 14 planes funded by different investors in November last year. 

“There’s already a leasing company from the Middle East that will finance the aircraft purchase [that Garuda will use],” said Sofyan Djalil, minister of state-owned enterprises. “Garuda is going to sign it at the World Islamic Economic Forum. Leasing was preferred by Garuda in order not to burden its balance sheet.” 

Sofyan added that leasing provides more flexibility than buying as the company can replace the planes when the lease ends. The scheme can also shield Garuda’s balance sheet from fluctuating exchange rates as the planes are still owned by the leasing company and not Garuda. 

On Wednesday, the carrier also announced that it will turn to its cargo service arm, GO Product, to add about $13 million to revenue in 2009. In 2008, its cargo service contributed 5.5 percent, or Rp 1 trillion ($84 million), of the company’s total revenue of Rp 18 trillion. Garuda expects cargo capacity to increase.

Riau Airlines makes maiden flight to Jakarta

The Jakarta Post | Thu, 01/29/2009 10:12 PM  

Riau Airlines (RAL), owned by the Raiu provincial government will introduce Friday two Avro RJ100 aircraft to serve the Pekanbaru-Jakarta route, a Riau provincial officer said Thursday. 

"RAL will debut tomorrow," Riau provincial spokesman, Zulkarnain, said, as quoted by the Antara news agency. 

Zulkarnain added that Riau province governor Rusli Zainal would officiate the debut of the Pekanbaru-Jakarta-Pekanbaru route. 

He added that the British-made 100-seater planes would fly twice daily from Pekanbaru's Sultan Syarif Kasim Airport to Tangerang's Soekarno-Hatta International Airport.(amr)

Air Asia opens new RI-overseas routes

Yuli Tri Suwarni, The Jakarta Post, Bandung | Fri, 01/09/2009 10:55 AM  

The Indonesian subsidiary of Malaysia's budget carrier Air Asia is planning to open at least 10 international routes in Indonesia this year to help reach its target of carrying 3.5 million passengers from Southeast Asia's largest economy. 

Air Asia Indonesia president director Dharmadi said Thursday the company hoped to generate Rp 2 trillion (US$185 million) of revenue from Indonesia this year, as against Rp 1.6 trillion from carrying 2.4 million passengers in 2008. 

Air Asia plans to open this year a new route linking Bandung and Singapore by operating two A-320s, each aircraft having a capacity of 180 seats. 

However, the airline is seeking support from West Java administration to immediately upgrade the runway at the Husein Sastranegara airport in Bandung for the use of its Airbus A-320 aircraft. 

"With a full cargo load, the A-320s are required to land on an airstrip with a thickness of more than 52 centimeters. We have proposed this since 2008," said Dharmadi after meeting West Java governor Ahmad Heryawan Thursday. 

The current thickness of the Bandung airport main runway is just 37 centimeters. 

Air Asia is planning to open 10 other new routes in Indonesia which will be served by 12 A-320 aircraft and five Boeing 737s. 

The routes include those linking Denpasar with Singapore, Denpasar with Perth in Australia, Medan with Penang in Malaysia, Medan with Hongkong, Medan with Bangkok, Medan with Phuket in Thailand, and Medan with Singapore. 

"We will only operate the A-320 aircraft if the airstrips in Indonesia meet the requirements," said Dharmadi. 

Air Asia carried some 160,000 passengers from Bandung to Kuala Lumpur back and forth last year, as more Malaysian tourists flocked to the city for shopping. 

The Husein Sastranegara airport is operated by state-owned airport operator PT Angkasa Pura II, which has already allocated Rp 60 billion (US$5.55 million) for improving the airstrip. 

Heryawan said the administration would help Air Asia in lobbying Angkasa Pura to immediately upgrade the runaway in a bid to allow bigger aircraft to use Bandung airport and generate more foreign tourist arrivals.

West Java gives the nod to land acquisition for new airport

Yuli Tri Suwarni, The Jakarta Post, Bandung | Sat, 01/03/2009 10:31 AM 

The West Java administration will finally begin acquiring land this year for a proposed new international airport that could replace the flood-prone Soekarno-Hatta International Airport outside Jakarta. 

The provincial administration says it will start acquiring the necessary land this year, delayed since 2005, to make way for Kertajati International Airport in Majalengka regency, 75 kilometers from the provincial capital Bandung. 

The West Java legislature has approved initial funding of Rp 100 billion (US$9 million) from the 2009 budget to purchase around 530 hectares of land for the airport's runways. 

Iwan Dermawan Kunaefi, head of the West Java International Airport Construction and Management Agency, said the planned airport could in future overtake Soekarno-Hatta airport as the country's main international gateway. 

He added Kertajati airport would be able to accommodate 6 million passengers annually in the first 10 years of operation, targeting those from Bandung, the north of the province and western Central Java, including Brebes, Tegal and Cilacap. 

The airport, Iwan went on, would also be an effective cargo consignment facility, thanks to a planned "aerocity" that would include an industrial zone. 

He said acquiring the land was a prerequisite demanded by three potential investors, one of them from Malaysia, still considering putting money into the project. 

"The land acquisition has so far been a major stumbling block. Investors will waver unless it's settled," Iwan told The Jakarta Post in Bandung on Friday. 

A delay in the land acquisition and airport construction would mean missing the 2010 airport operation target, given that construction only commenced in 2008, he added. 

He said the Transportation Ministry had approved the airport blueprint through a ministerial decree that included regulations on flight safety and noise limits, following an environmental impact analysis issued in 2006. 

He added at least Rp 1.3 trillion was needed for the initial stage of construction, covering 1,800 hectares of the airport. 

The Kertajati Aerocity project will measure 4,300 hectares and will include shopping malls and an industrial zone. It will cost around Rp 8 trillion to build. 

It will be built using a "green" renewable energy concept. 

Denny Juanda, head of the West Java Development Planning Board (Bappeda), said the provincial administration had allocated additional funding of Rp 50 billion for land acquisition to construct supporting infrastructure and facilities, including the 32-kilometer Cileunyi-Sumedang-Dawuan turnpike.

Indonesia aiming to attract more tourists from Macau

Indonesia is looking to attract more tourists from Macau including locals and expats to the country. 

By Sara Farr, Macau Daily Times, Friday, 02 January 2009 

Although local low cost carrier, Viva Macau, already flies five times a week to Jakarta, the Indonesian Ministry of Culture and Tourism wants to attract more locals and international tourists in Macau to explore other destinations in the country, Sapta Nirwandar, director general of marketing from the Ministry said. 

Speaking to the Macau Daily Times, during his visit to the SAR, Nirwandar said he hopes more people in Macau will visit Indonesia. 

“In Macau there are not only locals but also many expats living here, and Macau is now a major destination around the world receiving more than 20 million visitors each year. So we're inviting them to extend their visit to Indonesia, specially for a holiday destination,” Nirwandar said. 

Although there are no direct flight from Macau, to other destinations such as Bali, Nirwandar said the Indonesian government is trying to connect with other local airlines in Indonesia to connect flights between Jakarta and other destinations. 

“That means they [tourists] fly to Jakarta [from Macau] this time and maybe next time they will go to Bali. From jakarta it's easy to go to Bali, and there are many flights,” he said. 

Over the past two years since Viva Macau first flew to Jakarta, the number of visitors from Macau is “not bad.” 

“It's good, and that's why we want to increase [the number],” Nirwandar said, adding that the number of flights from Macau to Jakarta increased from twice a week to five times a week. 

“And next it will be increased to seven times a week... depends on the reediness of the market. That's why we're trying to promote awareness for the local people in Macau, expats and also international visitors to extend their visits [to Indonesia].” 

For Indonesia, Macau is seen as a strategic location because it is close to Guangdong and other mainland provinces. 

“These people can go to Indonesia via Macau, because the prices too are more competitive than flying from Hong Kong,” Nirwandar said, adding that although someone in Macau might choose to go to Bali via Hong Kong because of its direct flights, the prices are still more competitive, with the price of flights being cheaper from Macau even with connecting flights. 

“So what we want is to combine two airlines, Viva Macau and a local airline in Indonesia,” he said. 

Travellers in Indonesia do not have to settle for lazying around the hotel pool or tropical beaches. 

Expats have been going to the country for golfing as well as wellness spas. But Macau too has something different to offer Indonesians, mainly shopping, family entertainment, edutainment and gaming. 

“I'll be honest with you, of course there are many Indonesians who try to experience gambling, and that's also a reason for them to want to come to Macau,” the director general said, adding that regardless of the reason, Indonesia has seen an increasing number of tourists travelling to the SAR. 

In the next five years the number of tourists to Indonesia, from Macau alone, will increase, according to Nirwandar, who added that the market and will is “already there.” 

During his visit to the SAR, Nirwandar also met with the director for the Macau Government Tourism Office (MGTO), Joao Costa Antunes, who is looking to open a representative office in Indonesia as early as next month.

30 state firms on stream to go private, mostly via IPOs

The Jakarta Post, Wed, 12/31/2008 10:50 AM  

The government plans to sell shares in 30 state owned companies next year, most of them through the initial public offering (IPO) scheme, Deputy State Minister for State Enterprises Muhammad Yasin says. 

"Most of the firms will be privatized via an IPO, except those companies in which the government has only a small proportion of shares," said Yasin. 

The privatization program will include several carried-over programs from this year, including IPOs of steelmaker PT Krakatau Steel, flag carrier Garuda Indonesia and Bank Tabungan Negara. 

Yasin said the government expected to generate close to Rp 10 trillion (US$906 million) from selling around 30 percent of the shares in each of these companies. 

"Before we offer the stake to the market, we will first offer current companies' stakeholders the chance to buy them," he said, adding proceeds from the IPOs would be used to restructure the companies. 

Construction firms PT Pembangunan Perumahan and PT Waskita Karya are currently waiting for House of Representatives approval for their IPOs, according to Yasin. 

The ministry initially planned to privatize 44 companies next year, but decided to postpone several of them due to the recent stock market collapse as a result of the financial crisis following the Wall Street crash in the United States. 

Indonesia has 139 state-owned firms engaged in energy, mining, utilities, telecommunications, banks, services, and commodities. -- JP/(hwa)

Garuda to reopen Denpasar-Brisbane route next month

The Jakarta Post | Wed, 11/19/2008 10:27 PM  

State airline company Garuda Indonesia will reopen the Denpasar- Brisbane route next month, president director Emirsyah Satar said Wednesday. 

Emir said demand for direct flights between the two cities had recovered after plummeting following the 2005 second bombing in Bali, which led to the termination of the route. 

"The three weekly flights can potentially bring tourists to Indonesia, particularly to Bali," he said in Denpasar, as quoted by Antara news agency. 

Garuda currently flies to four cities in Australia with twice weekly flights to Perth, six per week to Sydney and five per week to Melbourne. 

"The total monthly seat capacity to and from Australia currently stands at 28,004 seats. With the Brisbane route, we will add another 3,516 seats," Emir said.

Lion Air seals $380m deal with ATR for new aircraft

The Jakarta Post, Thu, 11/20/2008 10:35 AM   

Airline company Lion Air signed Wednesday a memorandum of understanding with aircraft manufacturer ATR for an order of 10 ATR 72-500 aircraft and an option on another 10. 

Signed during the opening of the four-day Indo Defense and Aerospace Expo and Forum at the Halim Perdanakusumah Air Force Base in Jakarta, the deal is worth more than US$380 million including the extra options. 

The twin-turboprop, 72-seat aircraft will be operated by Lion Air's subsidiary Wings Air as a feeder service to Lion Air's Boeing 737-900ER twin jets. 

"With our brand new fleet of ATR 72-500s, we will able to develop a strong low-cost network, feeding Lion Air's major hubs," Lion Air CEO Rusdi Kirana said in a press statement. 

ATR CEO Stephane Mayer said the deal would "increase our presence in the expanding Indonesian market and continue the growth of our large fleet in Southeast Asia which has become a booming market in the last three years". 

With the arrival of ATR 72-500s, Wings Air will discontinue the operation of its McDonnell Douglas MD-82 and DHC-8-300 fleets. 

Wings Air's ATR 72-500s are powered by higher power rated PW 127 engines driving six-blade propellers and will be equipped with the Elegance cabin incorporating the latest developments in passenger amenities and comfort. 

The Franco-Italian aircraft manufacturer claims that all ATR models are compliant with noise regulations and have a large margin with regard to Chapter IV (ICAO) noise limits. -- JP/Novan Iman Santosa

European Union Offer Assistance to Improve Indonesian Aviation

Wednesday, 19 November, 2008 | 17:01 WIB 

TEMPO Interactive, Jakarta: The European Union (EU) is offering to cooperate in order to improve Indonesian aviation. 

Director General of Air Transportation Budhi Muliawan Suyitno said that the EU was now more open. 

“Before, the EU only imposed a flight ban but now its is offering assistance,” he said yesterday (18/11). 

He mentioned that five EU countries are serious about offering technical assistance. 

Germany, France, and the Netherlands will offer assistance for security and safety affairs while Sweden and the UK are offering training for human resources. 

This Friday, Directorate of Air Transportation will have a teleconference with the EU flight safety unit to talk about the progress over Indonesian aviation. 

“It is better to talk through a teleconference so there’ll be no miscommunication,” said Budhi. 

Budhi went on to say that the replacement of the EU ambassador to Indonesia, from Pierre Phillipe to Julian Wilson, will have a positive impact. 

Wilson is a cooperative person with good intentions of improving the relations between both parties. 

Since end of November 2007, the EU has banned Indonesian airlines from flying to Europe. 

The EU said it considered Indonesian airlines did not meet the proper safety standards. 

At an evaluation meeting on July 10 in Belgium, Indonesia offered three options. 

One of these was to encourage Indonesian flight regulators by working together with the International Civil Aviation Organization (ICAO) to improve safety standards. 

Budhi explained the cooperation will be realized soon. 

Five aviation inspectors will be appointed on November 27 when ICAO President Robert Kobeh Gonzales comes to Indonesia. 

In addition, the Civil Aviation Transformation Team (CATT) will also be formed through cooperation between ICAO, the Federation Aviation Administration (FAA-America), and the Civil Aviation Safety Authority (CASA-Australia). 

A representative office for the CATT team will be located at Transportation Department and be responsible to the Director General of Air Transportation. 

VENNIE MELYANI

Eurocopter to open subsidiary in Indonesia

The Jakarta Post, Jakarta | Wed, 11/19/2008 5:12 PM  

European civil and military helicopter manufacturer Eurocopter is set to expand its global presence by opening a subsidiary company in Indonesia by the end of next year. 

The EADS subsidiary, which was established in 1992 and have operated in Indonesia for the last 30 years, will set up its first Indonesian headquarters in Jakarta and will employ between 70 and 100 workers, according to reports by Kompas.com. 

The local office will cooperate with state-owned aircraft maker PT Dirgantara Indonesia (PTDI) in providing sales and after-sales services to its local customers. 

Eurocopter and PTDI had earlier signed a cooperation agreement for a local helicopter assembly factory for Super Puma MK helicopters in October this year. 

The company has previously secured a production permit for 118 BO 105 series choppers.

 

AirAsia removes fuel surcharge, offers free seats

The Jakarta Post

Vijay Joshi ,  The Associated Press,  Kuala Lumpur  |  Tue, 11/11/2008 12:22 PM   

Malaysia's AirAsia on Tuesday abolished fuel surcharges on all its flights and said it will give away half a million free tickets next year in an attempt to lure travelers amid the global slowdown. 

AirAsia Chief Executive Tony Fernandes said the region's biggest budget carrier will offer 500,000 free seats for travel between June 22 and Oct. 24, 2009, on all its domestic and international destinations. 

"It will be completely free. Passengers will only have to pay airport tax," Fernandes told a news conference. 

He said the recent steep drop in fuel prices has allowed AirAsia to adopt the bold strategy, adding that the loss of revenue should be offset by higher ticket sales, which will also be bolstered by new marketing strategies. 

Fernandes said AirAsia is the first carrier in the world to abolish fuel surcharges, which became a standard industry practice a few years ago as oil prices rose on their way to peaking at nearly $150 a barrel in mid-July. But since then, crude prices have tumbled because expectations that slower global growth will mean less demand. 

"We want to do is get rid of these surcharges," Fernandes said. "The best way to do it is aggressive marketing and low fares." 

Eliminating the surcharges is expected to cost AirAsia about 940 million ringgit ($63 million) a year. 

Fernandes said the move will boost Malaysia's economy as well as domestic and regional tourism by encouraging travel. 

When AirAsia started in December 2001, it focused on flying within Malaysia. It has since expanded to Southeast Asia and China, and is scheduled to launch flights to India next month. 

Malaysian Domestic Trade and Consumer Affairs Minister Shahrir Samad praised the decision. 

"Anything that reduces costs to consumers and keeps money in their pocket gets my support," he told reporters after the announcement. "What we need now is optimism instead of grumbling and quarreling." 

Fernandes added that he could not guarantee that the removal of fuel surcharges would not hit AirAsia's profits, but said the company does not anticipate that would happen. He refused to say what the possible losses might be. 

He noted AirAsia does not hedge its fuel purchases like other airlines do. To protect against the possibility of prices going up, some carriers make advance orders at current prices. 

Fernandes said AirAsia will not implement a corresponding increase in base ticket prices with the removal of fuel surcharges, but said he could not guarantee that the surcharge would not be re-imposed if oil prices surge again. 

"It would be foolish of me to say that fuel surcharges will not be imposed again but we will resist it for as long as possible," Fernandes said.