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Altitude Limitations

Growth in Indonesian Domestic Air Traffic Slowing


Bali News: Indonesia, domestic air travel, Sky Aviation, Tigerair Mandala, Indonesia low cost airlines, Arif Wibowo, Inaca
Click Image to Enlarge

(6/7/2014)

The Jakarta Globe reports that the number of domestic air travelers in Indonesia is expected to decline in 2014, slowing to 10% this year.

This is taking place when many Indonesian Air Carriers are struggling to survive.

Arif Wibowo, the chairman of the Indonesia National Air Carriers Association (Inaca) predicts growth in sir passenger numbers will stand at 10%, down from the 11% growth recorded in 2013.

Total domestic air trips taken in 2013 hit 90 million journeys.

Explaining further, Wibowo, who is also the CEO of the Garuda Subsidiary Citilink, said: “The slow economic growth impacts all sectors, including the aviation sector. Currency fluctuations, high jet fuel prices and stiff competition has made things worse."

Meanwhile, Tigerair Mandala continues to suffer economic difficulties as shareholders Tiger Airways and Saratoga Capital prepare to disinvest, with sources in the aviation community saying the two companies have no plans to own a share in the airline after July 1st in order to stem continuing losses.

Sky Aviation, who operates as a charter airline, has suspended flight operations since February.

It is estimated that 80 million of the 90 million domestic air trips in Indonesia last year were undertaken on low cost airlines.

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