Kuala Namu International Airport
- CAPA Analysis
- Schedule Analysis
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- Print Summary
- IATA Code
- Other airports serving Medan
- Medan Polonia Airport
- 3750m x 60m
- Airlines currently operating to this airport with scheduled services
- Airlines currently operating to this airport via codeshare
- Singapore Airlines
Kuala Namu International Airport opened on 25-Jul-2013, replacing the existing Medan Polonia Airport. The airport is operated by PT Angkasa Pura II, and stands on the site of a former palm oil plantation. Kuala Namu's eventual capacity of 50 million pax p/a by 2030 will make it the second largest airport in Indonesia by passenger traffic, after Jakarta Soekarno-Hatta International Airport. The airport is linked to Medan via a toll road and non-stop rail link, operated by PT Railink.
Location of Kuala Namu International Airport, Indonesia
137 total articles
10 total articles
Singapore-Indonesia has emerged as one of the world’s fastest growing markets with capacity up 40% year-over-year. While capacity increases on the two largest routes connecting the two countries – Singapore to Jakarta and Bali – have captured most of the attention, secondary routes are growing even faster.
The third and fourth largest Indonesian destination from Singapore, Surabaya and Medan, will see capacity nearly double in Nov-2013 compared to Nov-2012. To the 10 other smaller Indonesian destinations served from Singapore, capacity is increasing by a collective 78%.
LCC group Tigerair has quadrupled its Singapore-Indonesia operation over the last year, growing its share of capacity in the process from about 4% to 15%. Tigerair now serves eight Singapore-Indonesia routes, up from only two a year ago.
AirAsia has a 17% share and also now serves eight Singapore-Indonesia routes, up from four a year ago although its capacity has increased a more modest 34% from a much higher base. The Singapore Airlines (SIA) Group is the market leader with a 31% share and will soon serve all 14 routes as regional subsidiary SilkAir has added three Indonesian destinations.
The Kuala Namu International Airport outside Medan opened on 25-Jul-2013, becoming the least congested major airport in Indonesia. Medan currently only has six international routes and is served by only six foreign carriers, five of which come from nearby Malaysia and Singapore. But Kuala Namu has the potential of becoming a major international hub in response to growing demand from the local market, which has a catchment area of over 10 million people, and from transit traffic as infrastructure constraints at Indonesia’s other major airports worsen.
Garuda Indonesia, which opened a domestic hub in Medan earlier this year, has postponed international expansion from the airport. But Garuda will inevitably relook at opening international routes at Medan and using it as an alternative to Jakarta for domestic-to-international and even international-to-international connections.
Meanwhile, other Indonesian and foreign carriers will take advantage of a rarity in Indonesia – a spacious airport that is not operating above capacity. LCCs, which already account for over 70% of domestic and international capacity at the new airport, are particularly well positioned given that Medan does not have the business traffic profile of Jakarta.
Garuda is accelerating expansion in Indonesia’s under-served international market as part of an initiative to build its international profile ahead of entry into the SkyTeam alliance. The international expansion will see Garuda launch at least 10 new routes in 2013, including Jakarta-London.
London Gatwick will become in Nov-2013 its second European destination after Amsterdam. Garuda will also launch in 2013 several new short-haul international routes within Southeast Asia and three new medium-haul routes to Australia and Japan.
The long-haul expansion is made possible by the delivery of Garuda’s first batch of 777-300ERs. The 777-300ER will be Garuda’s new flagship and the only aircraft in its fleet featuring a three-class cabin – with economy, business and first class sections. Garuda also continues to expand its A330 fleet, which it uses primarily within Asia-Pacific.
Jetstar aims to catch up in Indonesia after squandering first mover advantage inherited from Valuair
The Jetstar Group is preparing to increase its presence in the booming Indonesia market with additional services from its Singapore hub. The expansion follows several years of relatively flat capacity to Indonesia for Jetstar while its LCC competitors have pursued rapid growth.
Jetstar faces challenges as it tries to catch up on several years of missed opportunities in the Indonesian market. The group may struggle to compete with larger players, most of which are also pursuing rapid capacity expansion. Jetstar lacks an Indonesian affiliate, making it difficult to sell in the local Indonesian market, which remains heavily dependent on travel agents.
But the opportunities in Indonesia are too humongous for the usually conservative Jetstar to pass up. It needs to make a push or risk being shut out entirely in one of the largest and fastest growing markets in Asia.
Competition in the Indonesia-Singapore market will intensify in 3Q2013 with Singapore Airlines (SIA) adding capacity while its regional subsidiary SilkAir and low-cost affiliate Tiger Airways each launch services to two new Indonesian destinations. Garuda Indonesia, Tiger affiliate Mandala Airlines and Jetstar are all planning to follow SIA, SilkAir and Tiger in adding capacity in the dynamic Indonesia-Singapore market.
The surge in capacity is in part made possible by a newly expanded bilateral agreement between the two countries. Slot constraints, however, threaten to impede growth for some carriers operating in the market and make it difficult to use newly awarded traffic rights. For example, Indonesia AirAsia has already been set back by slot constraints at Changi Airport in attempts to launch three new routes to Singapore.
This is the second part of a report looking at the Indonesia-Singapore market and the impact of the recently expanded bilateral between the two countries. The first part looked at the Jakarta-Singapore route, which accounts for 55% of Indonesia-Singapore capacity and has not seen growth in recent years due to bilateral restrictions.
The other 13 routes currently connecting Singapore and Indonesia have not generally been constrained by the bilateral. But there are huge opportunities to expand capacity on these smaller routes, driven by Indonesia’s rapidly growing economy and Changi’s position as the leading international hub for secondary cities in nearby Indonesia.
Leading LCC groups – including AirAsia, Lion and Tiger – as well as full-service carriers, led by Singapore Airlines regional subsidiary SilkAir, are likely to launch new routes connecting Indonesia with Singapore as well as add capacity in existing markets.