The domestic Indonesian aviation market will receive a much-needed shot in the arm if proposals for an alliance between five struggling airlines go ahead.
Garuda Indonesia, Merpati Nusantara Airlines, Bouraq Indonesia Airlines, Mandala Airlines and Sempati Air are the prospective members of the alliance. The grouping could provide a lifeline for Sempati, which ceased trading in early June. The proposals follow a series of meetings between the airlines and the new Indonesian government.
Hadisoemarco Soelarto, president of the Indonesian Air Carriers Association (Iaca), says the airlines and the Ministry of Communications will iron out the final details of the alliance over the next month. Soelarto says the airlines are working out which aircraft will be needed and which routes will be serviced.
It is likely that the fleet will mainly comprise BAe748s and Fokker F27 turboprops, with Boeing 737s making up the rest. Soelarto acknowledges that many of the aircraft have been out of service and need work to get them operational.
The alliance grouping will be formed amid declining traffic figures. Domestic traffic in Indonesia has halved from 6 million domestic travellers last year, says Iaca.
Although the alliance could help the domestic industry, the prospects for alliances with international carriers remain bleak. The alliance between Ansett Australia and Merpati has not been a great success, concedes Soelarto.
Iaca and the tourism authorities in Indonesia are pinning their hopes on an increase in tourism. They are looking to promote Indonesia in Europe as the Japanese and Asian tourist markets decline.
Source: Airline Business
