Indonesia's Ministry of Transportation announced that Jakarta Soekarno-Hatta International Airport will receive a USD1.36 billion renovation entirely funded by Angkasa Pura II (Jakarta Globe, 26-Jul-2011). Construction will commence in 2012 and complete in 2014. Changes included completing development of Terminal 3 by 2013, renovating terminals one and two, constructing a new cargo terminal by 2013. Other improvements include an automated transportation system linking the terminals as well as a shopping mall and a hotel. Vice Presidential Spokesman Boediono’s said it was hoped that the number of passengers would increase to 62 million passengers p/a by 2014, adding “that will mean increasing the apron capacity from the current 125 aircraft to 174 aircraft.”
Soekarno-Hatta to recieve USD1.37bn renovation
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Refusing to allow SIA and Lufthansa to coordinate prices and schedules in the Indonesia-Europe market may not have a significant impact on the overall SIA-Lufthansa JV. However, it is an unfortunate move by Indonesian authorities to protect Garuda ahead of the airline's potential launch of services to Germany.
Preventing or delaying SIA from launching Jakarta-Sydney has a bigger short term impact as it leaves in place – at least for now – the Garuda and Qantas duopoly in a growing market. SIA has also been temporarily stripped of 19 weekly slot pairs at Jakarta Soekarno-Hatta International Airport, in another related and seemingly protectionist move.
Southeast Asia aviation outlook: passenger growth accelerates, led by Vietnam, Myanmar and Malaysia
Southeast Asia’s aviation market recorded healthy growth in 2016, with passenger traffic expanding faster than the global average across nearly every country in the region. Six of Southeast Asia’s 10 countries had growth in or near the double digits, led by Vietnam and Myanmar. Seven countries had growth equal to, or higher than, in 2015.
Southeast Asia should continue to experience rapid growth in 2017 and beyond. Vietnam and Myanmar will likely again lead the pack in 2017, joined by Malaysia. The Philippines should experience growth of approximately 10% for the third consecutive year, also putting it towards the top of the pack.
However, overcapacity remains a long term concern, pressuring yields and profitability. The average profit margin of the Southeast Asian airline sector significantly lagged the global average in 2016, and this trend will likely continue in 2017.