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Singapore Airshow 2012: Pacific Royale launch to intensify full service competition in Indonesia

Analysis

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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