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The rapidly expanding aviation sector would provide competitive airfares to passengers

The Ministry of Transportation has projected a 16 percent growth in air travel in 2014 year, or around 169 million travelers. The figure includes those carried by international carriers and operators of frontier destinations. Indonesia’s airline industry is sprucing up for an aggressive expansion in 2103 to tap the increasing number of domestic and international travelers as the Indonesia’s economic growth is forecast to be among the world’s biggest.

The rapidly expanding aviation sector would provide competitive airfares to passengers and encourage the airways to continue to improve their businesses model.  There have been healthy competition and  this will remain so as the pie is getting larger for everyone to enjoy.As the much larger airlines in Indonesia will remain occupied with adding capacity by operating new jets and opening up more destinations, the aviation industry is expected to become more flamboyant with the arrival of new carriers  in the premium service sector.

Most of the new domestic carrier are going to enter the  premium full service market. Travellers who seek comfort and extra’s during flights will have more options. The Government national carrier “Garuda Indonesia” is currently number one in the premium sector.
As the Indonesian economy is expected to increase by 6.7 percent in 2014, consumers are expected to have larger purchasing power and would opt for a full-service flight.

Batik Airlines, the premium of Lion Air, plans to launch its maiden flight in May 2013, operating 11 Boeing 737-900 Extended Range (ER) jets. According to its aviation permit (SIUAU), Batik Airlines has secured approval to service on as many as 69 local and 25 international destinations. In the 3rd or 4th quarter of 2014, Kartika Airways ,Nam Airlines, and Jatayu Airlines are also expected to launch into the busy market. Nam Airways is owned Sriwijaya Air, a privately owned carrier and 3rd biggest domestic airline after Lion Air and Garuda Indonesia. The new premium carrier is set to fly with 25 Brazilian-made Embraer 190s to serve airports with runways much shorter.

Hightlights: * Batik Air and Malindo issues bonds * Jakarta-Surakarta service on 31-May-2013 * Launch daily Jakarta-Jayapura service * Increase Jakarta-Ambon frequency * Launch Jakarta-Denpasar and Jakarta-Yogyakarta services * Batik Air to receive an additional three Boeing 737-900ER aircraft in 2013 * Batik Air launches services to Pekanbaru and Ambon * Batik Air aiming for 90% on-time performance in 2013 *Batik Airlines launches twice daily Jakarta-Manado service * Two additional services from Jakarta * Lion Airlines launches full service subsidiary Batik Air on 25-Apr-2013 * Batik Airlines postpones the launch of operations * Batik Air accepts delivery of first Boeing 737-900ER

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