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| Sunday, 24 February 2002 |
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| News Business Features Editorial
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Seven new airlines to enter tight Indonesian market JAKARTA, Feb 23 (AFP) - Seven new private airlines are set to enter Indonesia's competitive domestic airline market despite the glut of carriers already battling for customers, a report said Saturday. The seven were Alatief Alair International, Asia Avia Megatama, Bali International Air Services, Nusantara International Services, Rusmindo Internusa, Indonesian Airlines Avi Patria and Satrio Mataram Airlines. It was not yet clear whether all seven will fly international routes, Saturday's Jakarta Post reported, quoting data from the directorate general of the air transportation office. On Thursday PT Awair International -- one of the minor players in the industry -- said it will next month temporarily suspend flights after a cut-throat price war. The company will halt flights on its three domestic routes on March 8 and resume them at the beginning of June, said spokesman Arifin Hutabarat. He said that apart from the price-cutting, which threatened the survival of the business, the company, which currently owns two Airbus aircraft, would also review the most suitable type of plane to operate here. The government deregulated the aviation sector in 2000. At least seven airlines have since started providing regular flights to compete with the previously established airlines -- state-owned Garuda Indonesia and Merpati Nusantara and privately-owned Mandala Airlines and Bouraq. The entry of the new operators and the slump in air travel following the September 11 attacks in New York and Washington have led to intense competition. A government decree which comes into force next month scraps the minimum price for domestic air tickets. |
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