- CAPA Analysis
- Schedule Analysis
- Cargo Analysis
- Route Maps
- Fast Fact Report
- IATA Code
- ICAO Code
- Main hub
- Jakarta Soekarno-Hatta International Airport
- Business model
- Low Cost Carrier
- Domestic | International
- Airline Group
- Part of AirAsia Group
- Association Membership
- Indonesian National Air Carriers Association (INACA)
Indonesia AirAsia is a low cost carrier based at Jakarta Soekarno-Hatta International Airport. The airline is a JV between Malaysian LCC AirAsia (49%) and PT Fersindo Nusaperkasa (51%). Indonesia AirAsia operates a fleet of Airbus A320 aircraft both domestically and internationally to destinations in South East Asia and Australia.
Location of Indonesia AirAsia main hub (Jakarta Soekarno-Hatta International Airport)
LCCs will continue to evolve into hybrids of the original core model. CAPA and OAG consider Indonesia AirAsia fits the LCC profile and it is included in our reporting on this basis. Please note: when reporting for an airline is changed from or to LCC the historical data is not affected and it can lead to a distortion in the current reported data. Contact us if you have any queries.
337 total articles
58 total articles
AirAsia nears 50 million annual passenger/200 aircraft milestones, having transformed Asian aviation
AirAsia ended 2014 having carried about 50 million annual passengers and with a fleet of nearly 200 aircraft across its portfolio of eight airlines. Nearly 280 million passengers have flown on AirAsia since its launch at the end of 2001.
AirAsia has had perhaps the most remarkable run by any airline in history and almost single-handedly shaken up Asia’s aviation industry. The LCC penetration rate within Southeast Asia is now nearly 60% compared to near zero in 2001.
AirAsia becomes the first airline brand in Asia outside China to carry 50 million passengers in a year. As a yardstick of its global scale, only 10 airline brands globally are currently in the 50 million passenger club.
Garuda Indonesia is reducing capacity across its medium and long-haul networks as the airline group increases its focus on the domestic market. Garuda has now made multiple adjustments to its international expansion plan, which has proven to be overly ambitious.
Capacity to Australia and Japan, Garuda’s two largest international markets after Singapore, is being cut as part of a restructuring of its unprofitable international operations. The cuts are a sensible response to overcapacity and intensifying competition but leave an opening for competitors, particularly long-haul low-cost start-up Indonesia AirAsia X.
Garuda will likely allocate almost all of its additional capacity in 2015 to the domestic market. The domestic expansion is partly strategic as Garuda responds to the rapid expansion of Lion Group full service subsidiary Batik Air.
Regulation of Indonesia’s airline sector is becoming more stringent as the government introduces a new floor price which will force carriers to stop selling heavily discounted fares. The new measure is an unfortunate knee jerk response that will purely have a commercial impact on airlines. Ostensibly a safety related move, it can only have a counterproductive effect in that regard.
The Indonesia’s airline sector is already over-regulated with unnecessary and impractical rules governing fares and splitting airlines into categories. Indonesia should be deregulating its vibrant industry and instead focus on upgrading infrastructure to facilitate future growth and meet global standards.
Indonesia’s domestic market has nearly doubled in size over the past five years and prospects for long-term growth remain bright. But growth slowed in 2014 as most airlines became unprofitable. This is hardly the time for new regulations that meddle in commercial matters and have nothing to do with operations or safety.
Indonesia AirAsia, Philippines AirAsia and new India and Japan joint ventures. The next stage begins
Part 2 of this report on the financial results of the AirAsia Group for 2Q2014 covered the – probably temporary – decline in fortunes for AirAsia's first and largest affilliate, Thai AirAsia.
Part 3 now examines the results on the outlook for the other affiliaties of the now-sprawling AirAsia group in other markets. As competition among LCCs grows in Asia, AirAsia is reaching the stage where its geographic market power can offer a unique strength. But it is not all plain sailing.
Indonesia AirAsia represents the group in that national market, where Bali/Denpasar is to become a transfer hub for Indonesia Air Asia and long-haul local JV Indonesia AirAsia X. Indonesia AirAsia is already Indonesia's largest international airline (by seats), but domestically the market competition has been intense, now partly diminished by the recent withdrawal of two competitors. Meanwhile, Philippines AirAsia has a more challenging path in what is a strenuously contested market.
As AirAsia ventures into India with AirAsia India and renews its presence in Japan's market with AirAsia Japan, the group will need its southeast Asian affiliates to maintain profitability.
AirAsia had one of its most challenging quarters in its 13-year history in 2Q2014 as overcapacity and intense competition across Southeast Asia impacted the group’s profitability. While the AirAsia Group’s Malaysian subsidiary remained profitable in 2Q2014, albeit with one of its lowest operating margins in several years, all of the group’s overseas affiliates incurred losses.
The group’s oldest and most established affiliate, Thai AirAsia (TAA), had a rare loss as political instability impacted inbound demand while domestic competition intensified. But TAA should also see an improvement in 2H2014 as Thailand’s tourism sector begins to recover and it starts to get feed from its new long-haul sister carrier, Thai AirAsiaX (TAAX).
The biggest medium and long-term challenges are in Indonesia and the Philippines, where AirAsia has been restructuring networks as part of turnaround initiatives. The group has decided to cut its fleet in the Philippines by eight aircraft while fleet growth at Indonesia AirAsia has been frozen for a second year, which will keep the airline at the 30 aircraft mark for all of 2014 and 2015. This second instalment of a three-part report on the AirAsia Group's 2Q2014 results deals with Thai AirAsia.
Jakarta-Singapore capacity has quickly dropped by over 20%, led by adjustments at LCC groups Tigerair and AirAsia. The declines reverse capacity increases from 2013, when a breakthrough in the Indonesia-Singapore bilateral led to a surge in capacity.
Jakarta-Singapore is the second largest international city pair route in the world but supply in late 2013 and 1H2014 far exceeded demand. As a result it emerged as one of the most obvious examples of overcapacity in the Southeast Asian market.
Airlines were overly ambitious and aggressive in applying for and using newly available traffic rights. Recent adjustments have brought much needed rationality to the market but capacity could start being added back, again putting pressure on yields and load factors.