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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Citilink plans more domestic expansion for 2016 with new secondary bases due to Jakarta constraints
Citilink is planning more rapid domestic expansion in 2016 as the Garuda Indonesia low cost subsidiary adds eight A320s for a total of 44 aircraft. Capacity is expected to grow by approximately 30% for the third consecutive year as Citilink continues its push to grab more domestic market share despite relatively sluggish demand.
Nearly all of the additional capacity in 2016 will have to be allocated to secondary bases, including possible new bases at Medan and Makassar, due to slot constraints at Jakarta, Bali and Surabaya. Profitability, which Citilink has achieved for the first time over the last year, could come under pressure as routes connecting Indonesian secondary cities are typically lower yielding.
Citilink is now evaluating converting some of its A320neo orders into A321neos, a sensible move as it would enable the LCC to resume capacity expansion in Jakarta from 2017 even if it is unable to mount new flights from the Indonesian capital. Citilink now has 35 A320neos on order for delivery from 2017 to 2021 and is also considering the A321neoLR, which would enable it to reach eastern Australia and northern China. Citilink is purely a domestic carrier but aims to launch in late 2016 or 2017 international services within Southeast Asia and to Perth in Western Australia using existing A320ceos.
Garuda Indonesia secures London Heathrow slots but slows widebody and international expansion
Garuda Indonesia has again shelved plans to launch new destinations in continental Europe but has secured slots at London Heathrow to replace London Gatwick. Frankfurt and Paris have been put on the backburner and capacity to Garuda’s two main medium haul markets, Australia and Japan, will remain at relatively modest levels after large cuts were implemented in early 2015.
The airline has taken a sensible decision to decelerate growth of its medium/long haul network and as a result has adjusted its business plan to include fewer A330s and fewer new generation widebody aircraft. Scheduled international capacity also has been adjusted by allocating a larger portion of its widebody fleet to Saudi Arabia charters.
Garuda still plans to add long haul capacity in 2016 as it decouples its two European destinations, London and Amsterdam, but overall international capacity will grow at a significantly slower pace than initially planned. Garuda launched London Gatwick in Sep-2014 as a tag to Amsterdam and now plans to drop Gatwick in Mar-2016 while launching London Heathrow to Jakarta non-stops. Initially the Heathrow flight is slated to stop in Singapore on the outbound leg but Garuda expects eventually to operate non-stops to London once runway issues at Jakarta are resolved.