Pacific Royale is an Indonesian start-up, full-service carrier. The airline was established by Indian and Indonesian businessmen to take advantage of a new bilateral air services agreement between the two countries.
Fleet: 2 x Fokker 50, 2 x A320
CEO: Samudra Sukardi
- Jakarta Soekarno-Hatta International Airport
- Surabaya Juanda International Airport
- Batam Hang Nadim Airport
Location of Pacific Royale main hub (Jakarta Soekarno-Hatta International Airport)
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Sriwijaya Air is seeking to renew its fleet, expand its network and launch a new full-service subsidiary in a bid to maintain its position as the third largest airline in Indonesia’s fast-growing market. The low-profile airline group, which is already one of the 30 largest in Asia, has big ambitions to expand domestically and to a lesser extent internationally with new Boeing 737-800s and Embraer E190s in two-class configuration. But the group plans to stay away from the faster-growing Indonesian budget airline sector and, in a rather odd strategy, have two full-service brands with one positioned at the premium end and one in the middle.
Sriwijaya risks getting squeezed out as much larger Lion and Garuda pursue rapid expansion in both the budget and full-service sectors while the Indonesian affiliates of AirAsia and Tiger grow rapidly at the low end of the market. But within Indonesia’s large group of second tier full-service carriers, Sriwijaya has the strongest position and stands to benefit in the likely event of consolidation.
Competition in Indonesia is about to intensify further as Pacific Royale prepares to launch services next month with an initial fleet of two Fokker 50s and two A320s based in Surabaya and Batam. Pacific Royale is targeting Garuda and Indonesia’s other full service carriers with a low-density two-class product on its A320s that includes lightweight fibre optics-based in-flight entertainment (IFE) systems in both cabins. The carrier’s business plan envisions rapid growth including 20 to 25 A320s, which will form the backbone of Pacific Royale’s fleet, within three years.
Pacific Royale will launch with domestic services but regional international services, primarily from Indonesia’s second largest city of Surabaya, are planned as part of a second phase which is slated to begin by mid-2012. Medium to long-haul international services with A330s are also being considered as part of a third phase which could begin as early as late 2012. While Pacific Royale will have several routes from Jakarta, where it has established its headquarters, it will focus primarily on relatively underserved point-to-point markets which bypass the congested capital.
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