Asiana Airlines plans to resume service to Indonesia in late Jul-2013, after eight years of service suspension, as per a 11-Mar-2013 GDS inventory display. The carrier will launch twice weekly Seoul Incheon-Denpasar service from 25-Jul-2013 (utilising Boeing 767-300 equipment configured with 15 business and 235 economy seats) and daily Seoul Incheon-Jakarta service from 21-Jul-2013 (using A330-300 equipment configured with 30 business and 260 seats). The carrier previously operated to Jakarta in Aug-2005. Korean Air and Garuda Indonesia are currently the only two carriers operating between South Korea and Indonesia, according to Innovata. [more – original PR – Korean - Denpasar] [more – original PR – Korean - Jakarta]
Asiana Airlines to resume service to Indonesia after eight year absence
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Indonesia-Australia aviation market poised for rapid growth and diversification beyond Bali
Indonesia-Australia aviation has traditionally been dominated by inbound traffic to Bali. The resort island accounts for over 80% of capacity in the market and Australian visitors to Indonesia currently outnumber Indonesian visitors to Australia by a more than six to one ratio. But the market is slowly starting to diversify with more flights linking Australia with the capital Jakarta and secondary Indonesian destinations.
Australia is well positioned to benefit from Indonesia’s booming economy as its growing middle class starts to have the income and desire to holiday overseas. The geographic proximity of the two countries means several routes are within the range of narrowbody aircraft, opening up a huge range of new options for LCCs and full-service carriers from both countries.
This is the third report in a series of reports on the Asia-Australia aviation market. The first report looked at the Malaysia-Australia market and the rapid growth of AirAsia X. The second report looked at the Philippines-Australia market and bilateral limitations which are blocking the launch of services from Cebu Pacific. This report looks at the larger Indonesia-Australia market, which has seen significant growth this year and has potential for continued rapid growth over the medium to long-term.
Garuda Indonesia’s international ambitions set back by London postponement
Garuda Indonesia has postponed by at least six months the launch of services to London, the first of several new non-stop routes in the carrier’s ambitious European expansion plan. The postponement is a big blow to the carrier’s hopes to boost its position in the global market by using its new flagship aircraft, the 777-300ER, to serve new high profile long-haul routes and start competing in the UK-Australia market.
The postponement also highlights a major potential roadblock in the international expansion of Garuda and further expansion of the overall Indonesian market – infrastructure. Garuda cited runway pavement issues at Jakarta in forcing its decision to push back the planned Nov-2013 launch of Jakarta-London services until May-2014. Indonesia’s major airports including Jakarta are operating well above capacity and the government has repeatedly been behind the curve in upgrading infrastructure, including terminals and runways.
Although Garuda has been preparing for its new 777-300ER fleet since ordering 10 of the type in early 2008, Jakarta airport operator Angkasa Pura II has not yet upgraded the airport’s runways to support a fully loaded 777-300ER. Garuda now expects the runway to be upgraded by May-2014, allowing the carrier to finally launch non-stop services to Europe.