Air travel – in this article we restrict ourselves to air travel in the form of travel in commercial airplanes – is vital. In fact, air travel has become increasingly important over the past decades, especially in Southeast Asia where the combination of rapidly growing middle classes and lower airline ticket prices (caused by fierce competition between the region’s low-cost carriers) has allowed an increasing number of people to opt for air travel when making a domestic or international trip.
20 January 2022 (closed)
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Today's Headlines Airlines
Sriwijaya Air, the third-largest airline in Indonesia, plans to conduct an initial public offering (IPO) on the Indonesia Stock Exchange in March 2017 in which it will release 25% of its total outstanding capital stock. Chandra Lie, President and CEO of Sriwijaya, said its IPO plan started after the company posted net profit in three consecutive years. Through the IPO the company will become more transparent and obtains fresh funds to purchase 15 narrow body and 2 wide body airplanes, while also increasing the number of flight routes.
On Tuesday (30/06), an Indonesian military airplane (C-130 Hercules) crashed into a densely populated residential area in the city of Medan in North Sumatra. The aircraft, en route from the military airport in Medan to Tanjung Pinang (capital of Indonesia's Riau Islands), crashed shortly after take-off and probably carried 122 people. A government spokesman said that at least 141 people have died. This figure is likely to rise. According to local media, the pilot of the military aircraft requested to return to base due to engine trouble.
The Lion Group, parent to Indonesia’s largest privately held airline Lion Mentari Airlines (Lion Air), targets to raise IDR 10 trillion (USD $820 million) by selling a 30 percent stake through an initial public offering (IPO) on the Indonesia Stock Exchange (IDX) in 2016. If realized, this would be one of the largest IPOs on the IDX in recent years. Lion Group CEO Rusdi Kirana confirmed the company’s IPO plans earlier this week. Part of the proceeds will be used to develop a new airport in Lebak (Banten, West Java).
Recently, the Indonesian government decided to raise the airfare price ceiling by ten percent in an effort to support local airlines. This measure is required as Indonesian airlines face financial difficulties due to the depreciating rupiah exchange rate and higher global fuel (avtur) price. However, airlines have become worried as the government also decided to remove its fuel surcharge policy (that was implemented in February 2014). This fuel surcharge also aimed at supporting local airlines amid rising fuel costs.
Skytrax, the United Kingdom-based consultancy airline and airport review and ranking agency, named Hong Kong’s Cathay Pacific as the world’s best airline in the World Airline Awards this week at the Farnborough International Airshow in England. Cathay Pacific snatched the title from Emirates that had to settle for a fourth place this year. The ranking is based on surveys involving 16 million air passengers, evaluating the products and services of full-service as well as budget airlines. Garuda Indonesia was ranked seventh.
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