- 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.
387 total articles
62 total articles
AirAsia has signed up as the anchor tenant for Changi Airport’s T4, a new hybrid terminal which is slated to open in 2017. AirAsia expects to reduce its operating costs significantly in Singapore as it moves from T1 to T4, giving it a better foundation to allow it potentially to resume expansion in Singapore.
AirAsia grew rapidly in Singapore from 2008 through 2013 but cut capacity in 2014 as market conditions became extremely challenging. Lower operating costs, driven by automation of passenger services, and incentive packages should make it easier for AirAsia to add capacity on some of its 15 existing routes from Singapore and launch new routes.
AirAsia could also potentially use T4 as a transit hub by introducing its Fly-Thru product in the Singapore market. Although it is not a hub or base Changi is AirAsia’s third largest airport. Only Kuala Lumpur and Bangkok have more AirAsia seats than Singapore.
Indonesia AirAsia (IAA) is planning further capacity and network adjustments as part of turnaround efforts. IAA is shrinking its fleet but should be able to reduce unit costs as aircraft utilisation rates increase and cost reduction initiatives are implemented.
Despite its recent struggles IAA remains an important component of the AirAsia Group group’s long-term strategy, particularly its international operation. The affiliate is also needed to feed new long-haul low-cost carrier Indonesia AirAsia X (IAAX).
IAA is expected to increase its focus on international operations, a sensible move given the challenges it has faced in Indonesia’s highly competitive domestic market. AirAsia can afford to live without being a significant player in the Indonesian domestic market and should instead try to leverage its leading position in the country’s relatively small but promising international market.
Long-haul low-cost start-up Indonesia AirAsia X (IAAX) has adjusted its fleet expansion plan for 2015 and 2016 in response to unexpected regulatory challenges. IAAX has finally secured approvals to serve Australia, which it now plans to launch on 18-Mar-2015, but is still seeking to secure approvals from Japan and South Korea while new regulations in Indonesia also pose a potential roadblock.
IAAX initially planned to commence operations in Dec-2014 on the Bali-Melbourne route. An unexpected last second setback from the Australian regulator forced IAAX to postpone the Melbourne launch by three months.
IAAX ended up shifting gears and commenced operations in Jan-2015 with services to Taiwan, which has a more favourable regulatory environment. But the carrier has since been operating only one weekly flight to Taipei, resulting in an extremely low utilisation rate for its initial fleet of two 377-seat A330-300s. IAAX is now planning to add only one aircraft 2015 and one more aircraft in 2016 although this could change if the regulatory environment becomes more favourable.
Garuda Indonesia budget subsidiary Citilink has further delayed the launch of scheduled international services as it focuses on its goal of achieving its first annual profit in 2015. Citilink will instead pursue less risky domestic expansion in 2015 and has begun operating seasonal international charters during periods of weak domestic demand.
Citilink has been the fastest expanding airline in Indonesia over the past four years as it has pursued strategic growth in an attempt to close the gap with rival Lion. Citilink accounted for about 14% of passenger traffic among Indonesian LCCs in 2015 compared to less than 4% in 2010.
But Citilink’s rate of expansion is slowing as it starts to focus more on profitability. Citilink was in the black for the first time in 2H2014 and is confident it can be profitable for the full year in CY2015.
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.