Indonesia Dominates Airshow

Indonesian buyers dominated this year’s Singapore Air-show, underscoring the vast Southeast Asian archipelago’s growing importance in the world aviation industry.

An expanding middle class, strong economic growth, political stability and the need to link the resource-rich islands are fuelling a travel boom that could spawn even more local airlines, industry executives and analysts say.

Budget carrier Lion Air grabbed the limelight at the beginning of the trade fair on Tuesday when it formally sealed a $22.4 billion deal for 230 aircraft with US aircraft maker Boeing.

Lion Air ordered 201 Boeing 737 MAX and 29 next-generation 737-900ERs, with purchase rights for an additional 150 planes for its domestic and regional operations.

Dinesh Keskar, vice president of Asia Pacific and India for sales at Boeing Commercial Airplanes, described the deal as “the largest order in the history of aviation that I can know of”.

With some 240 million people, Indonesia has the world’s fourth largest population and is the most far-flung archipelago with over 17,000 islands scattered across 33 provinces and three time zones between Singapore and Australia.

Indonesia’s economy grew 6.5 per cent last year, the fastest pace in 15 years, with growth projected at between 6.3 and 6.7 per cent this year.—AFP

“Spicy” Space Jet

By: Greg Waldron

Space Jet, the business aircraft charter start-up of Indonesian low-cost carrier Lion Air, will begin operations later this year with Hawker 900XP twin jets, but said it may add other types to the fleet at a later date.

Two of the nine-seat midsize aircraft will arrive in May and September, with two more to be added to the fleet at a later date, said Lion Air president Rusdi Kirana.

“There is no specific time-frame for Space Jet’s third and fourth 900XP,” Kirana said. He added that the company will only consider other types of private aircraft after all four 900XPs are in service. “Other types are possible, but it depends on what we need,” he said.

Space Jet will offer time-sharing and block charter, but Kirana believes traditional ad hoc charter will account for the bulk of the demand.

“Even though time-sharing and block charter would be less expensive [for the customer], I don’t see people being as interested in this,” he said. “The private jet service is targeted at Indonesia’s high-end, who are less concerned about price.”

Kirana anticipates demand for services across Indonesia – mirroring the 62 destinations already served by Lion. “The people who charter us will be aware of the region’s infrastructure and our ability to provide the service at just four hours notice,” said Kirana

While private jet charter is common in Indonesia, Kirana noted, the majority of aircraft in the region are privately owned. This hampers the availability of aircraft as many operators have to juggle the demands of charter customers with those of the owners, he added.

Aside from offering private jet service, Space Jet will operate scheduled services with Lion’s Boeing 737-900ER, and eventually widebody aircraft on both domestic Indonesian and regional routes.

FlightGlobal.com

Indonesia Flies High at Singapore Airshow

Singapore. Indonesian buyers dominated this year’s Singapore Airshow, underscoring the vast Southeast Asian archipelago’s growing importance in the world aviation industry. An expanding middle class, strong economic growth, political stability and the need to link the resource-rich islands are fueling a travel boom that could spawn even more local airlines, industry executives and analysts say.

Budget carrier Lion Air grabbed the limelight at the beginning of the trade fair on Tuesday when it formally sealed a $22.4 billion deal for 230 aircraft with US aircraft maker Boeing.

Lion Air ordered 201 Boeing 737 MAX and 29 next-generation 737-900ERs, with purchase rights for an additional 150 planes for its domestic and regional operations.

Dinesh Keskar, vice president of Asia Pacific and India for sales at Boeing Commercial Airplanes, described the deal as “the largest order in the history of aviation that I can know of”.

With some 240 million people, Indonesia has the world’s fourth largest population and is the most far-flung archipelago with over 17,000 islands scattered across 33 provinces and three time zones between Singapore and Australia.

Indonesia’s economy grew 6.5 percent last year, the fastest pace in 15 years, with growth projected at between 6.3 and 6.7 percent this year.

Foreign investors ploughed $20 billion into the economy in 2011, up from $17 billion on year.

“Indonesia alone is able to sustain the robustness of the (Southeast Asian) market because the middle class is growing, it has a growing population and the country is also gaining confidence on the economic and political fronts,” said aviation analyst Shukor Yusof of Standard & Poor’s Equity Research.

“The country is creating the market forces that allow more and more people to fly. Geographically it’s perfect for the industry.”

Airlines are targeting Indonesia’s eastern part such as Makassar, Sulawesi and Manado, all areas with a promising tourism sector, said Shukor, who expects smaller family-owned airlines to join the competition.

“And don’t forget that these are all the areas where you have all the mines and all the resource-based industries,” he added. “People have got the money to travel.”

The market is so massive that there is still room for growth even with the current number of airlines plying the country, according to an executive at Indonesian flag carrier Garuda, which is facing stiff competition from private firms.

“There is enough to be shared by everybody. Even if new airlines come in, we can all still make profit,” said the source, who asked not to be named.

At the Singapore Airshow, which is held every other year and closes this weekend, Garuda also signed a deal to buy six Bombardier CRJ1000 jets with an option for 18 more.

The six firm orders are worth $297 million, Canada-based Bombardier said, adding that if Garuda exercises the 18 options, this will raise the deal to about $1.32 billion.

And just two days after firming up its Boeing order, Lion Air announced it was buying 27 smaller aircraft from European manufacturer ATR.

The new ATR 72-600 turboprop planes, worth $610 million, will be integrated into Lion Air unit Wings Air, with full delivery scheduled for the end of 2015.

“The ATR aircraft are perfectly adapted to the Indonesian short-haul market and allows Wings Air to connect communities, even those located in remote areas,” said Rusdi Kirana, chairman of Wings Air and president of Lion Air.

Even on the military side, Indonesia was also a star at the show.

The country signed a $325 million contract with Airbus Military for nine C-295 transport planes to be used by the air force for defence, logistical and humanitarian purposes.

Agence France-Presse

380? Crazy! :)

- Largest ever commercial airplane order for Boeing

- Lion Air is launch customer for 737 MAX 9

 Boeing and Jakarta-based Lion Air today finalized a firm order for 201 737 MAXs and 29 Next-Generation 737-900ERs (extended range). The agreement, first announced last November in Indonesia, also includes purchase rights for an additional 150 airplanes.

“The 737 MAX is the best choice for Lion Air and the best airplane to serve our passengers,” said Rusdi Kirana, Lion Air Founder and President Director. “We’re excited to be the first airline in Asia to fly the 737 MAX and to be the global launch customer of the 737 MAX 9.”

.

With orders for 230 airplanes valued at $22.4 billion at list prices, this deal is the largest commercial airplane order ever in Boeing’s history by both dollar value and total number of airplanes. Lion Air will also acquire purchase rights for an additional 150 airplanes.

“Lion Air has been a leader in Indonesia from the very beginning,” said Dinesh Keskar, vice president of Asia-Pacific and India Sales for Boeing Commercial Airplanes. “Today more people are flying in Asia at lower fares because of the 737 and this historic 737 MAX order will help connect more people in the future.”

The 737 MAX is a new engine variant of the world’s best selling airplane and builds on the strengths of today’s Next-Generation 737. The 737 MAX incorporates the latest-technology CFM International LEAP-1B engines to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market.

Airlines operating the 737 MAX will see a 10-12 percent fuel burn improvement over today’s most fuel efficient single-aisle airplanes and a 7 percent operating cost per seat advantage over tomorrow’s competition.

To date, the 737 MAX has orders and commitments for more than 1,000 airplanes from 15 customers and the Next-Generation 737 family has won orders for more than 6,600 airplanes.

Lion Air, Indonesia’s largest private airline, currently operates or has on order a total of 178 Next-Generation 737s.

Contact:
Wilson Chow
International Communications
Boeing Commercial Airplanes
+1 425-306-5921
wilson.chow@boeing.com

Lauren Penning
737 MAX Communications
Boeing Commercial Airplanes
+1 425-306-3691
lauren.l.penning@boeing.com

More information: http://www.newairplane.com/737/737Max/lionAir

SINGAPORE, Feb. 14, 2012 /PRNewswire/

Lining the Dream

Indonesia’s low cost carrier Lion Air is in negotiations to buy 10 long haul aircraft from Airbus or Boeing Co, its founder and Chief Executive Rusdi Kirana said on Saturday.

Kirana said the aircraft would be either Airbus A330 or Boeing 787 Dreamliner passenger jets.

(Reuters)

Expand your wings!

Airports in the Asia-Pacific region are getting to grips with the requirement for urgent expansions to cope with rising passenger numbers, as capacity issues assert themselves.

The combination of fast-developing economies in the region and globalisation means more people are travelling for work and leisure.

This beneficiaries are not just legacy carriers, but also, increasingly, low-cost carriers (LCCs) expanding beyond home markets to capture travellers looking for the “no-frills” option. Some legacy carriers have responded with aggressive marketing, while others are setting up low-cost subsidiaries of their own. In 2011 alone, seven new carriers were unveiled by major airlines in the region.

Airports in the region are taking urgent steps to redevelop and expand their facilities and infrastructure to ensure they keep up.

Statistics from Airports Council International show that worldwide passenger numbers rose by 6.6% in 2010 to surpass five billion. Growth is strongest in the Asia-Pacific and Latin America-Caribbean regions, where the increases were 11.3% and 13.2% respectively. Total cargo volumes handled by airports also jumped, by 15.3% to 91 million tonnes in 2010. Experts expect passenger numbers to double in the next 15-20 years.

The impact of the growth of LCCs on airports in the region can perhaps be most clearly seen in Singapore, Malaysia and the Philippines. Changi Airport’s budget terminal, first built in 2006, underwent an expansion barely two years later to double its capacity to seven million passengers per annum. Now, Changi is splitting four of its aircraft bays at Terminal 2 to boost handling capacity. The redesign will allow each bay to hold either one widebody or two narrowbodies, instead of only one aircraft regardless of size.

NARROWBODY INFLUX

“With a strong growth in aircraft movements, especially an increasing proportion of narrowbody aircraft operated by LCCs, the introduction of multiple-aircraft receiving stands allows us to optimise the use of aircraft stands,” says Changi Airport Group, adding that the usage of terminals is also being reviewed and facilities, including those at the budget terminal, may be upgraded.

Singapore Airlines’ newly launched low-cost long-haul subsidiary Scoot will start operating its Boeing 777s out of Terminal 2 in mid-year as the country’s budget terminal is unable to handle widebodies. To tear down the budget terminal while there is still room at the three main terminals to temporarily house the LCCs, and construct a new building to match foreseen growth, may be necessary.

In Kuala Lumpur, Malaysia Airport Holdings is building the world’s largest low-cost terminal, expected to cost ringgits (M$) 3.9 billion ($1.3 billion) and have a passenger capacity of 45 million. The operator estimates that there will be “continued growth in low-cost travel”, with passenger numbers to hit 30 million by 2017 and 40 million by 2022.

But controversy surrounds the project, as anchor airline AirAsia has complained about the escalating construction costs, delays and unsuitable land use, and said an airport with a capacity of 30 million would have been sufficient. The terminal is expected to be operational in 2013, after several rounds of delays.

AirAsia now operates out of a 60,000m2 budget terminal away from Kuala Lumpur International Airport that can handle 15 million passengers annually.

In the Philippines, even secondary airport Clark International is pushing for the construction of a new low-cost terminal “because of demand from budget carriers”.

AirAsia Philippines, which chose Clark as its 13th regional hub, has committed to bring in at least five million passengers within the next three to seven years, says the airport: “The current terminal cannot accommodate the expected influx of passengers once AirAsia starts operating.” Clark International has capacity for 2.5 million passengers. A proposal for the budget terminal has since been submitted to the government and, once approved, will take three years to build.

These cases reflect how airports are adjusting to new economic realities to quickly build or expand budget terminals to support the growth brought about by the LCCs.

And these LCCs are no longer only focused on their home market, but are also expanding to other countries in the region. In some cases this means collaborating with other carriers – Tiger taking a stake in Seair, or AirAsia working with affiliates in Indonesia and Philippines, for example – to make themselves stronger players in the market. Others such as Jetstar Asia have expanded beyond short-haul to reach destinations in Australia and Japan.

Budget terminals aside, airport operators in the region are also facing capacity woes at their existing main terminals. Jakarta’s Soekarno-Hatta International Airport, for one, is handling 44.3 million passengers annually – well over its capacity of 22 million. State-owned operator Angkasa Pura II has proposed to expand and revamp both the airport’s domestic and international terminals, complete the construction of its low-cost terminal and build a fourth terminal and a third runway – a project expected to cost rupiahs (Rp) 11 trillion ($1.2 billion). The fourth terminal will accommodate 25 million passengers and 60 aircraft, while the third runway will improve traffic flow to 87 aircraft movements per hour, from 52. If approved, the four terminals together will have the capacity to handle 90 million passengers yearly.

MAXING OUT

But adding a terminal will still be a short-term solution, as the operator expects passenger numbers to hit 87 million by 2025, quickly hitting maximum capacity. “If growth is what we predict, even if the fourth terminal and third runway are approved, there is still a need for an additional airport,” says the operator’s vice-president of aviation business, Amran Amran, adding that the local government is studying the feasibility of building a new airport in Karangwang.

 Indonesia’s situation is in part reflected at Manila’s Ninoy Aquino International Airport (NAIA), where capacity of the four terminals is 32 million but throughput has reached 30 million. NAIA-1 alone, designed to handle 4.5 million, already services 7.3 million.

In January, recognising the need to expand and renovate the run-down airport, the government allocated Philippine pesos (Ps) 1.16 billion ($27 million) for the urgent structural and rehabilitation works and for the building of a new rapid-exit taxiway at the airport.

A large chunk of the money will go towards structural retrofitting of the terminal to ensure compliance with national standards, and another to build the taxiway, to allow landing aircraft to leave the runway faster.

The country’s Department of Transport and Communications (DoTC), however, is also considering a proposal to sell NAIA, as the airport has reached saturation point and there is little room for expansion. The sale could raise up to $2.5 billion – which could contribute to the costs of building Clark International up as the country’s new international gateway. That airport has always trailed behind NAIA and is positioned as a secondary airport, but because of NAIA’s capacity issues could become the country’s main gateway,

Clark International went through a round of expansion in 2010, and a bidding process for the second phase is already in progress. After the operator sets up a budget terminal, it is to build a second terminal for legacy carriers.

This case shows how LCCs are encouraging the growth of more airports in smaller cities for point-to-point routes. This leads to competition among airports as LCCs look closely at the operating environment and costs of an airport to determine where they fly.

Airports such as Changi International and Hong Kong International, positioned as strong regional hubs, are also seeing changes. With LCCs offering point to point and aircraft being built to fly longer distances nonstop, competition for stopover traffic intensifies.

N219 and Indonesia’s stronger skies

PT Nusantara Buana Air (NBA) has ordered 30 N 219 units from state-owned aircraft firm PT Dirgantara Indonesia (PT DI) as part of plans to expand their business in the country’s airline industry, a senior official said in Jakarta on Monday.

“We are going to sign the Letter of Intent (LOI) and Memorandum of Understanding (MOU) with PT DI on Tuesday at the Singapore Air Show,” NBA manager James Massie told The Jakarta Post.

The 19-seat aircraft are worth US$4 million each.

He said that the arrival of the 30 new planes was in line with the company’s plan to expand operations in Kalimantan, Sulawesi, East Nusa Tenggara and Papua in the near future.

NBA is currently operating more than 12 pioneer routes in Aceh, North Sumatra, Bengkulu, West Sumatra and Maluku with 5 Casa 212-200 units.

“The purchase of the N 219’s is also part of our plan to replace the older Casas,” he said.

He said that NBA is planning to acquire eight new aircraft this year; four units of the 29-seat Jetstream 41 from Scotland and four units of the 18-seat Dornier 228 from Germany.

“We will begin receiving the new aircraft within the next two months,” he said. (nfo)

Ten Indonesian Hospitals to be Internationally Accredited

TEMPO Interactive, YOGYAKARTA:Ten hospitals in Indonesia are expected to be internationally accredited by the Joint Commission International (JCI) this year.

The hospitals include RS Cipto Mangunkusumo, RS Jantung Harapan Kita, RS Kanker Dharmais and RSPAD Gatot Subroto in Jakarta, RSUP Dr Sardjito (Yogyakarta), RSUP Wahidin Sudiro Husodo (Makassar), RS Hasan Sadikin (Bandung), RSUP Adam Malik (Medan) and RSUP Sanglah (Bali).

Supriyantoro said that currently, more Indonesians preferred to undergo medical treatment overseas. Based on the World Bank’s data, trillions of rupiah from Indonesian health funds is spent in other countries.

“Indonesia’s medical equipment is as good as other countries,” said Supriyantoro. “The key is service, commitment and communication.”

The JCI was chosen as it is the oldest institution and and is a benchmark body for international health standards.

“JCI’s assessment component standard is needed to improve hospitals in Indonesia,” said Supriyantoro.

PRIBADI WICAKSONO

Plan to mass-produce Esemka car gets thumb-up

Jakarta (ANTARA News) – Plans to mass-produce the student-made Kiat Esemka car has received a thumbs-up from the Association of Young Indonesian Businessmen (HIPMI) as they prepare for the opening of 33 dealerships across the country this year.

The Kiat Esemka refers to the SUV assembled by students at the state vocational high school (SMKN 2) in Solo, in cooperation with the owner of KIAT auto body shop in Klaten, both in Central Java.

The students` achievement gained much attention after Solo Mayor Joko Widodo told the media he had acquired one Kiat Esemka and would use it as his official car.

Nearly 80 percent of the materials and components used in the assembly of the 1500cc vehicle were locally manufactured, while only 20 percent of the parts were imported.

Jokowi, as the mayor is popularly called, said the Kiat Esemka car could be produced en masse this year at a total investment of Rp90 billion.

“We will develop the Esemka car as a smallholder industry. If all the permits have been secured, we will only need Rp50 billion in investment to expand the plant and buy more equipment, and another Rp40 billion to finance its operating expenses,” he said after attending a hearing at the House of Representatives Commission VI in Jakarta recently.

To date, seven local and national investors have expressed keen interest in investing in the mass production of the Kiat Esemka car, he said.

“We give a chance to both local and national investors. We will first choose which of the interested investors is the best,” he said.

The mass production of the car made by PT Solo Manufaktur Kreasi and Solo Technopark would begin on a small scale and only after the car passes emission and road-worthiness tests and receives an identification registration number from the authorized agency.

“If all matters related to the licensing could be resolved in February and March, we can produce 200 to 300 units,” he said, noting that nearly 200 to 300 units of the Kiat Esemka car could be produced per month.

HIPMI chairman Raja Sapta Oktohari recently said that the association was preparing to open 33 dealerships to sell the cars across the country this year.

“Our target for 2012 is opening one Esemka car dealership in each of Indonesia`s 33 provinces,” he said.

He added that HIPMI wanted to invest in the Esemka car by setting up the dealerships across Indonesia. To realize its plan, the association would use its nation-wide network. “We will empower the networks of our members residing in all 33 provinces.”

The association`s aim in opening the dealership was to help maintain consistent standards in the Esemka car`s production in terms of after-sales service, repairs, and availability of spare parts.

“We hope the quality of the home-made car will always be maintained beyond the moment it is sold,” Raja said, adding he still did not know how much money will be needed to open the 33 dealerships.

He said HIPMI`s initiative was a reflection of its appreciation for a product made entirely in the spirit of the nation reaching economic independence. “We want the euphoria of the Esemka car making achievement not to be just momentary, but to continue,” he said.

HIPMI also wanted to encourage all elements of the community, young businessmen in particular, to become enthusiastic about domestic autos.

Since the first model of the car was launched a few months ago, orders for the low-cost auto have poured in and now reached about 5,000 units, Jokowi said.

The orders include 20 units by Commander of the Army`s Strategic Reserve Command (Kostrad), Lt. Gen. Azmyn Yusri Nasution.

“We hope the order for the 20 units of the car could be met by March 6, 2012. At least some of them, though not all, could be delivered during the commemoration of the Kostrad`s anniversary on that date,” he said when inspecting the car`s assembly plant in Solo early this month.

Jokowi, who claimed to be the brand ambassador for the Esemka car promotion, said all orders for Kiat Esemka car would be met in stages, according to the list of orders.

Despite the influx of orders, the Kiat Esemka car manufacturer would not find it hard to meet them, he said. “The supply of components is enough and even larger than what is needed,” he said.

The components for the Kiat Esemka car are produced by small and medium scale industries in several parts of the country, including Gombong, Magelang, Tegal, Purbalingga and Jakarta.

Further, Representatives of the government, state-owned companies and the House of Representatives Commission VI at the hearing threw their weight behind the mass production of the Esemka car.

“Political support from all parties is needed to develop a national car like this. We will find it hard to struggle alone,” Deputy Chairman of the House Commission VI Aria Bima said at the hearing.

Deputy State Enterprises Minister for Strategic and Manufacturing Industries, Inranda Laksanawan, said the government was ready to support the development of a national car, including the Kiat Esemka car.

Also, several state companies, such as PT Inka, PT Dirgantara Indonesia and PT Pindad, joined in supporting the development of Kiat Esemka car by providing training facilities for its future employees.(*)

Mandala Air…Sure now it’s in April 2012?

Mandala Airline Set for April 2012 Re-launch

Indonesia Ministry of Transportation to Issue Air Operating Certificate to Mandala Airlines in February in Preparation for April Start-Up

Bisnis Indonesia reports that the Ministry of Transportation will issue a formal Air Operating Certificate (AOC) to Mandala Airlines in the second week of February 2012.

The head of communications for the Ministry, Bambang S. Ervan, confirmed that the AOC would be issued in conjunction with the arrival in Indonesia of aircraft to be operated by Mandala Airlines.

 Mandala Airlines, resurrected from near bankruptcy, is now owned by Saratoga Capital (51%), Tiger Airways Holdings Ltd (33%) and the remaining shares are held by creditors of the airline.

Ministry officials confirmed that the needed AOC would be issued to Mandala in February with formal operations by the airline expected to commence in April 2012. According to Ministry officials, the first aircraft of the Mandala fleet – an Airbus A320 – has already arrived in Indonesia.

Mandala was granted a reprieve by the government when its operating license was extended for four months on January 1, 2012, in order to allow the carrier to get its business affairs in order.

The investment manager of Saratoga Capital, Devin Wirawan, confirmed to the press that Mandala is preparing to meet national regulations that mandate a minimum of 10 aircraft be operated by every Indonesian air carrier, stipulating that the airline must own 5 of the subject aircraft.

Said Wirawan: “There are now two Airbus 320 aircraft that will arrive in Indonesia when the AOC is issued. If we brought the aircraft earlier than that we would incur parking fees.”

He said the routes flown by Mandala when it resumed operations would not vary substantially from the routes operated prior to its closure. Mandala formerly flew 16 domestic routes and four international routes.

The new plans for international flights by Mandala indicate that the reformed airline will concentrate it international flights on Singapore.

(balidiscovery.com)