Adam Air Reaps a Bitter Apple

(3/17/2007)

"If you think safety is expensive, try an accident."

As reported on balidiscovery.com, Indonesian low-cost air carrier Adam Air has been plagued by numerous mishaps and misfortunes affecting their flight services in recent months. (See related articles below).

According to a report published in the Indonesian-language daily Kompas, the Airline now suffers from a crisis of confidence among customers who appear to be staying away in droves from the company's scheduled flights.

Following the loss of the Surabaya-Manado Adam Air flight on January 1, 2007, load factors on what was once a major route served by the Airline dropped from normal levels of above 90% to below 70%. Because of poor loads, flight operations were suspended by Adam Air on the sector on January 28th with plans to resume service on March 1, 2007.

However, plans to recommence service on March 1, 2007 on the Surabaya-Manado route have now been indefinitely postponed due to a lack of passenger demand. The Surabaya-based district manager of Adam Air, Natalia Budiharjo, told Kompas "How can we fly if no one wants to (fly with us)?"

Efforts by the Airline to re-launch the Surabaya-Manado route by offering fares as low as Rp. 500,000 (approximately US$54) have also failed to reignite demand on the route that once contributed an estimated Rp.2.61 billion (approximately US$283,700) to the carrier's turnover each month.

With the cessation of flights from Surabaya to Manado, Adam Air now only serves Jakarta and Balikpapan from the East Java capital.

Adding to Adam Air's woes, according to Kompas, is declining demand on the Airline's remaining routes with Adam Air's normal flight frequency of 10 flights per day between Jakarta and Surabaya now down to just 6 or 7 flights each day.

Related Stories:

[Boeing . . .Boeing . . Bong! ]

[Adam Air to Undergo Safety Audit]

[Editorial: Flight KI-574 Where are You?]

[Adam Air Pilot Arrested]

[Government Penalizes Adam Air]

[Adam Air Offers Surprise Bonus Destinations]

[Adam Air on the Eve of an Expansion?]