Lion buys 234.....

[jetjockey696]

Lion buys 234 Airbus A320s for $24b

European aerospace giant Airbus has landed a massive deal from local budget carrier Lion Air to buy 234 of its popular Airbus A320 narrow-body aircraft worth up to US$ 24 billion.

Lion president director Rusdi Kirana said that the order might comprise 174 Airbus NEOs (new engine option) and 60 Airbus CEOs (current engine option), although the airline had until next year to determine final configurations.

"These aircraft will be used for two new airlines in the Asia Pacific region that we plan to have by 2014," Rusdi said in Paris. "The first six airplanes will be delivered in 2014."

Previously it was reported that European airframer giant Airbus and Indonesian budget carrier Lion Air would announce an order of 200 narrow-body aircraft A320 aircraft in Paris, France, later in the day, French newspaper Les Echos reported early on Monday.

It was reported that French President Francois Hollande will oversee the announcement ceremony of which details have yet to be revealed.

The huge order, potentially worth almost US$20 billion, marks a major shift in Lion’s procurement strategy, which until recently only included both narrow-body and wide-body Boeing aircraft.

In its inventory, the low-cost carrier (LCC) has a Boeing 737 classic series, 737-800 and 737-900ER narrow-body aircraft. Lion also operates two Boeing 747-400 wide-body aircraft for its Saudi Arabia routes. Lion has also ordered a Boeing 787 Dreamliner.

It is not yet clear whether the order would be a mix of Airbus A320 classics and the re-engined A320 NEO. NEO stands for new engine option, which offers better range and fuel economy.

Previously on Feb. 14 2012, Lion Air signed a contract to buy 230 units of Boeing 737’s consisting of 29 737-ERs and 201 units of the 737-9 MAX, Boeing's answer to Airbus’s A320 NEO.

The contract was signed at the Singapore Airshow in Changi, as a follow up to a memorandum of understanding (MoU) that was signed in Bali on Nov.18, 2011. The MoU was signed with the presence of US President Barack Obama, who attended the ASEAN Summit.

Lion's director of general affairs, Edward Sirait, refused to reveal any details until the announcement was made. He also said there was no change in Lion's procurement strategy, saying it would be better to have comparisons.

“While it is a must for budget aircraft to operate as efficiently as possible, it does not limit operated aircraft only to a single type,” Edward said over breakfast.

“What we are looking for is the efficiency.”

“I believe the limit is 50 units of the same type of aircraft. Beyond that, you have the liberty to operate other type of aircraft that also must meet the efficiency level,” Edward said.

Other than Lion Air, the Lion Group also flies ATR-72-500/600 twin turboprop aircraft for its Wings Air feeder airline. The company is set to launch its own full-service airline, Batik Air, later this month and is preparing its Malaysia-based joint venture, Malindo Air.

The Jakarta Post, Paris | Business | Mon, March 18 2013,

[davidcruzd]

Good news I guess...

Does anyone know if this airline takes experienced pilots through agencies? or directly through website or something?

Thank you very much.

PS: At this moment in their website only appear the option to apply as cadet pilot

[Iver]

Wow!!!! That's a lot of iron. What are the total orders now for Lion Air - 500+ new aircraft over the next decade? I guess it makes sense to diversify your vendors (Boeing & Airbus) if you have large enough fleets that include support services to preserve your negotiating leverage.

Too bad pilot salaries will likely continue to disappoint into the future despite the growing need and competition for experienced pilots in that region of the world. Air Asia needs pilots. Garuda needs pilots. Lion Air needs LOTS of pilots. Certainly great pilot opportunities if you are willing to accept sub-par salaries... :mad::yuk:

[Iver]

Sounds like Airbus might win another big "replacement" deal. Like Lion Air, SpiceJet is also considering adding/switching to Airbus aircraft from the Boeing 737-800.

See Article:

SpiceJet Weighs Switch to Airbus From Boeing on Technology


By Karthikeyan Sundaram - Mar 18, 2013 1:44 AM ET


SpiceJet Ltd. (SJET) (http://www.bloomberg.com/quote/SJET:IN), the Indian discount carrier operating an all-Boeing Co. fleet, said it may consider a full switch to Airbus SAS (http://www.airbus.com/aircraftfamilies/passengeraircraft/a320family/spotlight-on-a320neo/) aircraft as it weighs options for a new generation of planes.

“As long as you can manage the implications and the risks that you’re taking and there’s enough money in it” the company would consider the switch, Chief Executive Officer Neil Mills said in an interview in Mumbai yesterday. The carrier currently has 37 Boeing 737 aircraft and plans to add seven more of the planes this year, he said.

A switch by SpiceJet would further tilt India (http://topics.bloomberg.com/india/)’s budget airline fleet market share in favor of Airbus, whose planes are used by IndiGo, India’s biggest domestic carrier by market share, and Go Airlines (India) Ltd. Such a move could further hurtBoeing (BA) (http://www.bloomberg.com/quote/BA:US) as it works to implement safety upgrades to its 787 Dreamliner to end a two-month grounding of the fleet after a smoking battery forced an emergency landing Jan. 16.

Mills was part of the EasyJet Plc team that in 2002 oversaw the start of a transition at the U.K. carrier from an all-Boeing fleet to Airbus aircraft. EasyJet had 75 aircraft when it started the transition toward an Airbus fleet, Mills said.

SpiceJet will consider Airbus A320neos to replace its Boeing fleet, he said. “It’s the new generation of aircraft that offers the next level of technology,” Mills said.
737 Max

Shares of the budget airline fell 1.2 percent to 33.5 rupees as of 11:10 a.m. in Mumbai. The stock has declined 24 percent this year.

Boeing, based in Chicago (http://topics.bloomberg.com/chicago/), didn’t offer an immediate response to an e-mail seeking comments.

The planemaker said last month it’s in talks with SpiceJet and Jet Airways (India) Ltd. to sell its 737 Max single-aisle aircraft as the plane maker forecast Indian carriers would need 1,450 new planes through 2031.
Boeing has 1,064 firm orders globally for the 737 Max single-aisle planes, Dinesh Keskar, senior vice-president for India and Asia Pacific sales, said last month. In comparison, Airbus had 1,734 firm orders for the A320neos as of Dec. 31.

In 2011, IndiGo firmed up an order for 150 A320neos and 30 of the existing version of the A320, while GoAir confirmed a deal for 72 A320neos.

SpiceJet’s Mills said the carrier will separately consider adding as many as five Bombardier Inc. (BBD/B) (http://www.bloomberg.com/quote/BBD/B:CN) Q400 turboprops to expand its regional flights.

To contact the reporter on this story: Karthikeyan Sundaram in New Delhi (http://topics.bloomberg.com/new-delhi/) at [email protected]

[captjns]

New airplanes won't fix the malfunctioning infrastructure of the airline. Also let's not forget that Lion Air can't fly to the rest of the world. How many flights can they operate between Jakarta and Halim?:}

They are another pathetic excuse for an airline that has their Government in their pocket.

[sheppey]

That's going to mean an enormous amount of simulator training to cover all those aircraft. Does Lion Air have its own simulators?

[eaglesnest1972]

who will fly these acfts?

[squarecrow]

I doubt the business is really out there what with Air Asia's CEO ordering 300 A320 Neo, Malindo Air etc etc.

[Iver]

Lion Air Australia?

[Massey058]

Lion Air Australia?

They would need to pass a CASA Audit which they have as yet been unable to do. Also the EU ban complicates issues with insurance and potential contracts, regardless of where they operate.

[captjns]

Contract positions to be sold later to legitimate operators who really want and need the jet for their expansion. Sort of cornering the market and hopeful profiteering.

[training wheels]

Contract positions to be sold later to legitimate operators who really want and need the jet for their expansion. Sort of cornering the market and hopeful profiteering.

Where's the source of this information .. or is this just your guess?

[training wheels]

Apparently uncle Rusdi doesn't think an order of 700 aircraft will be enough ... check out this interview from the ATR website.

ATR Aircraft (http://www.atraircraft.com/mediagallery/videos.html)

[captjns]

Where's the source of this information .. or is this just your guess?

I left out the term "Speculation". But at the end of the day given the fact they can't seem to get by the dreaded "Black List", what else can they do with so many jets?

[jetjockey696]

What I got told about his sweat shop of lion workers...I guess all work, no play make Jack ACCIDENT prone...:p.. Well Papi Rusdi has forgotten about his local workers.. No pay increases, living costs going up (yes. even in JKT:ugh: Even Alexis and BATS girls have increased there prices:()

Loin, He will get his pilots as there are so many different contracts for pilots, Now (CAPTAINS) Malaysian and probably some expat earning 9000+USD (90hrs per month) plus 8wks on 2wks off plus ID90 travel and housing.. Local slaves (captains) earning 7/8000USD (100+hrs) 4days off per month and 12 business days off per year (annual leave) NO ID travel... :mad: well i guess they have no time to go.. :oh:

His plans is probably to franchise his company to Southeast Asia... (open skies 2015) if JCO (Indonesian doooooonut shop)can do it, Loin can do it tooo:ok::E

Btw... I decided to change Lion to Loin Air.:ok::p

[volare_737]

Malaysian and probably some expat earning 9000+USD (90hrs per month) plus 8wks on 2wks

Are you trying to say thats good ???????????????????

[kwaiyai]

Its Lion Air Like it or lump it.

[mutt]

Also the EU ban complicates issues with insurance and potential contracts, regardless of where they operate. Are you sure about that? I would prefer to see a European list of airlines who wanted to operate to Europe and were permitted / banned, rather than a list of all airlines in a specific country especially when they don't have suitable aircraft to operate the route to Europe.

But considering that the Indonesian CAA now insist that pilots must have at least 500 hours prior to employment, where are they going to source the pilots?

Mutt

[training wheels]

That 250 hours on type ruling only apply to foreign pilots. There are a number of part 141 schools in Indonesia now churning out local CPL graduate pilots.

[captjns]

Here's your answer Mutt.

List of airlines banned within the EU - Transport (http://ec.europa.eu/transport/modes/air/safety/air-ban/index_en.htm)

[Aviatornik]

So, does that mean if someone who is not a native to indonesia can get his license converted and then he is eligible to fly ??

[captjns]

So, does that mean if someone who is not a native to indonesia can get his license converted and then he is eligible to fly ??

Can you spell EXPAT?

[smiling monkey]

Lion Air Australia?

Australia may well be a possibility according to this Bloomberg article.

Lion Air Plans Asia to Australia Ventures With 1,000 Planes - Bloomberg (http://www.bloomberg.com/news/2013-04-01/lion-air-plans-asia-australia-ventures-using-1-000-plane-fleet.html)

[jetjockey696]

A warm Airbus welcome for Lion Air's milestone A320 Family order - YouTube (http://www.youtube.com/watch?feature=player_detailpage&v=CUKuGNvHUPs)

Looks good... the Lion Airbus..:ok:

[Massey058]

Australia may well be a possibility according to this Bloomberg article.

They've wanted that for a very long time. Biggest issue is to pass the CASA audit which they haven't been able to do so far. I imagine after the Tiger debacle there and recent events it may become even harder.

[jetjockey696]

TRANSLATED.....


PT Lion Mentari Airlines said it would bring the Boeing 787 Dreamliner. "Come early 2015, when asked where, likely to Batik Air," said Lion Air general director Edward Sirait, the launch Batik Air, on Thursday evening, 25 April 2013.

The plane, he said, will be used for long haul flights or "long haul". "Because if it was wasteful for the country," he said. Next year, Lion will bring five Dreamliner aircraft.

For the value of the investments made in bringing the Dreamliner, Edward claimed not to know. Price of the aircraft, he said, the content varies depending on the plane. "Because our new order, not to determine how much it costs," said Edward.

Thursday 25 April 2013, Lion Mentari Airlines launched a Batik. Lion Air's subsidiary will operate with WiFi facility. "Passengers can call and use WiFi during flights," said Edward.

He explains, the airline wants to meet the needs of passengers against information technology facilities. To access phone and WiFi, Batik Air partnership with Telkomsel. Edward mentioned no problems with regulation over the technology used in the flight declared eligible.

"Regulators will create the rules of the game," said Edward. WiFi tools for that, he said, is mounted on the plane. But it is still not activated equipment. It refers to the value of the investment for the installation of WiFi equipment on each plane reached US $ 3-4 million.

For operation, the airline still has to take care of the licensing to the Ministry of communication and Informatics. After permission was out, Edward went on, the new airline will operate the aircraft with WiFi.

Edward revealed, this time of year there will be 36 new aircraft. "But we will see, is priority to Lion, Malindo, or where," he said. However, he said, Indonesia's market as "base" PT Lion Mentari Airlines still take precedence.

This year, Batik Air would operate six Boeing 737-900 ER. Investment per aircraft ranges from US $ 80 million to 90 million without WiFi facility. "Without WiFi, investing each plane is US $ 80 million to 85 million," said Edward.

Edward explained, comes with Batik service "full service" because of Indonesia's economic growth, including for the medium. He also referred to other considerations.

"As one" airline "' right not to be present in two other categories," he said. Edward said, Batik Water can be an alternative society that has been using the services of "low cost carrier" (LCC) to try a flight of "full service" One water.

Batik Air will start operating on May 3. Routes offered are Jakarta-Manado and Jakarta to Balikpapan. While starting May 8, 2013, Batik Water will open flights for the route Jakarta-Pekanbaru and Jakarta-Ambon.


TEMPO.CO – Jum, 26 Apr 2013

[smiling monkey]

Batik Air will start operating on May 3. Routes offered are Jakarta-Manado and Jakarta to Balikpapan. While starting May 8, 2013, Batik Water will open flights for the route Jakarta-Pekanbaru and Jakarta-Ambon.

Air comes up in Google Translate as 'water' because in bahasa, 'air' (pronounced ay-err) means water. Well, at least I hope that's the case, unless Lion is preparing for another amphibious water landing ... :E

[jetjockey696]

The company behind low-cost carrier Lion Air plans to invest Rp 20 trillion ($2.1 billion) to build an express railway line to Soekarno-Hatta International Airport, improving transportation links between Jakarta and the Tanggerang aviation hub.

“If the government allows Lion Air Group in as investors, we would be very happy,” Rusdi Kirana, Lion Mentari Airlines’s president director, was quoted as saying by Investor Daily.

The national government had previously announced plans to build a 30 kilometer railway line linking the airport with Manggarai station in South Jakarta. The link has been extended by 15 kilometers to Halim Perdanakusuma Airport in East Jakarta. The government is also discussing plans to convert Halim airport into the main terminal for low-cost airlines.

“We are ready in terms of financing,” Rusdi said, adding that overseas banks would back Lion in the project. In 2011, the Export-Import Bank of the United States helped Lion purchase 230 Boeing 737s for a listing price of $21.7 billion.

The Transportation Ministry said it received an expression of interest from the airline two months ago, and is now looking for other investors to bid.

“Lion has an interest in servicing its customers … but this is also a huge project,” said Tundjung Inderawan, director general for rail transportation at the ministry.

Sarana Multi Infrastruktur, a government infrastructure financing arm, is conducting a feasibility study for the railway project. Should all plans go ahead, the express railway project will be ready for tender by early next year.

The express train project is one of two seeking to link Soekarno-Hatta with downtown Jakarta. Another proposed line will detour through Tangerang.

That project is backed by Railink, a joint venture of state-controlled airport operator Angkasa Pura II and train operator Kereta Api Indonesia. It is expected to be finished in 2015, behind its initial target of August 2014.

Established in 2000, Lion is now the largest privately held airline in Indonesia and is expanding its business from the airline industry to property.
Lion is set to open a 170-room hotel in Manado, North Sulawesi, this year.

On Thursday, Lion launched Batik Air, which will provide full service to passengers, including food and in-flight entertainment. Lion is seeking to fly Batik Air services to Australia.

Lion in March launched Malindo Airlines, which is in partnership with Malaysia’s National Aerospace and Defence Industries (NADI) to service Malaysia.

Lion signed a deal worth $24 billion — recorded as the most valuable commercial order in history — with France’s Airbus on March 18, ordering 234 jets to be delivered from 2014 to 2026.


JG 29/04/13

[Laker]

4 days off per month?!!! Surely that can't be true? I can't imagine any self respecting pilot would sign up for that.

[jetjockey696]

Yep.. 4 Required day off per month.. Not many respecting pilots left...life is getting tough.. if you dont want..they are many other pilots knocking on the door.. they keep coming to indonesian..love though flying hours..as many pilots told me..

4 RDO..per month..its normal here in indonesia.. except Garuda has longer rest period than 9hrs. same as the 12 days annual leave, it Indonesia requirement..

[brasmelzuit]

you are generalising..it only happens in Lion, dude.. It doesnt happen in Garuda, Merpati, Sriwijaya, not to mention AirAsia..They all have minimum 8 days RDO.. and airasia has 28days annual leave..

[captjns]

Lion Air and their affiliates are nothting but a bunch of bums touting a bottom feeding unsafe, unprofessional operation.

Who has ever heard of a professional operation not providing a valid training schedule. They offer a SIM card for phone which one has to purchase. Then one has to sit around on their arse awating for a SMS to advise what, where, and training will be held for the next day.

No wonder this airline will never see the US or Euroland.

[Iver]

For comparison sake, how does Lion Air T&C and days off per month compare to:

1. Air Asia
2. Silkair
3. Sister company Batik Air

Just trying to understand whether Lion Air will see an exodus for other LCCs or bigger national airlines when training bonds are paid off - or whether T&Cs of other LCCs are relatively similar.

Also, there is talk that Lion Air could place aircraft from their huge Boeing/Airbus orders in Australia. So, does Lion Air have the legal ability to set-up an airline within Australia to fly domestic flights? Would it require a JV with an Australian company to do so? Doubt Lion Air could attract any pilots on their low Indonesian wages...:eek::mad:

[jetjockey696]

just in case you missed this piece of old news...


Thirty Indonesian Pilots Grounded for Flying Overtime

Thirty Indonesian pilots have been temporarily banned from flying for exceeding the maximum working limit in the air.

“Exceeding flying hours causes fatigue and affects flight safety,” said Bambang Ervan, spokesman of the Transportation Ministry, as quoted by Tempo.com on Thursday.

He refused to give details of the airlines.

Each pilot’s grounding term would be adjusted according to the length of their overtime.

The ministry limited the flying hours of a pilot to only nine hours in a day, 30 hours in a week, 110 hours in a month and 1,050 hours in a year.

For cabin crew, their maximum limit — which includes flying hours — is 14 hours in a day, with at least nine hours rest before the next flight.

Bobby Mamahit, head of the human resources development at the Transportation Ministry, said the lack of pilots in Indonesia was one of the underlying reasons behind pilots working overtime.

Bobby told Tempo.com that Indonesian airlines needed 4,000 additional pilots, adding that the country needed on average between 700 and 800 pilots per year.

Alvin Lie, an aviation observer, recently told Tempo.com that it was airline management who forced pilots to work overtime.

“If they [pilots] refused overtime, the next month they would not be given flying hours [by the airline], so their income would drop to only a basic salary,” he said.

But Bambang said that the pilots should be able to reject the request of the airlines to work overtime, rather than face sanctions from the government as the airlines would not be sanctioned.

“Pilots are the ones who suffer the loss if they fly overtime,” Bambang said

JG 25/01/2013.

[jetjockey696]

Short of Pilots, Government Turns To Civil Servants to Fill Gap

The Transportation Ministry is looking within its own ranks to source talent to overcome the shortage of pilots in the country’s fast-expanding aviation industry.

The effort to test whether the nation’s civil servants would be put to better use at 30,000 feet comes as the government grapples with the twin problems of a glut of bureaucrats — about 4.6 million — and an acute shortage of pilots and pilot instructors.

A large banner reading, “The Transportation Ministry offers civil servants in the ministry opportunities to be trained as pilots,” is on display in front of the ministry’s human resources department in Gambir, Central Jakarta.

Bambang S. Ervan, a spokesman for the ministry, confirmed the message was correct, saying that it was the first time the idea had been tried.

“[Those who enlist] will be trained at one of our flying schools and, on completion, will obtain the most basic pilot license,” Bambang said.

To obtain an entry-level license, called a private pilot license, trainees must complete 60 flying hours and more than 300 ground-training hours. After graduation, they can fly non-commercial aircraft.

The ministry has two flying schools, one in Curug, Banten, and a second in Banyuwangi, East Java, producing 150 pilot graduates a year between them, Bambang said.

The ministry’s program is scheduled to operate within 18 months.

Bambang said the program was made to fill the gap in Indonesia’s airline industry, which includes 16 scheduled commercial airline operators.

“The aim is to train flight instructors rather than to produce commercial pilots,” Bambang said.

The Transportation Ministry launched the program because it is not allowed to recruit more civil servants under the ongoing recruitment moratorium that has been imposed across most national government agencies as a cost-saving measure.

“There are not enough flight instructors in our schools right now, and we cannot recruit any more people. So the viable option is to train our staff,” Bambang said.

“It is possible for the graduates to become commercial pilots depending on their aptitude and the requirements from the respective airlines. But their first duty is to be instructors,” Bambang said.

Aviation analyst Dudi Sudibyo said the government’s program was commendable.

“Anyone can be a pilot, even civil servants, because it depends on whether they can pass all the related aptitude tests,” he added. “I think it is quite innovative for the government to take this approach in addressing [the issue of pilot shortages],” Dudi said.

The rapid expansion of Indonesia’s aviation sector has led to the pilot shortage. According to Dudi, Indonesia needs to produce at least 400 new pilots every year.

Bambang said the recruitment be strictly supervised. “Of course we will not recruit any random person. They will undergo the same rigorous training and procedures as any other pilot trainees,” he said.

Indonesia’s civil service is rife with ill-discipline, including reports of bureaucrats clocking off during working hours and failing drug tests. The country’s aviation industry, meanwhile, faces longstanding security concerns.

The crash of a Lion Air plane into the sea off Bali’s Ngurah Rai airport last month damaged already-weak public confidence in the sector. Investigations into the cause of the crash are ongoing.

Bambang said security was the Transportation Ministry’s chief concern. “With or without this program, security is our number one priority,” he said.

Dudi said a similar approach was taken by professional pilots. “Every pilot wants to perform their job safely. Security is their first, second and third priority,” he said.

But he added that Indonesia’s flying schools lag behind their regional counterparts in regard to facilities and the quality of the curriculum.

“For example, our schools still use planes with an analog controller, while most of the cockpits in commercial planes are now digital,” he said.

“It means that a graduate from an Indonesian school will need further training to fly a commercial plane.”

National airline Garuda Indonesia is among those carriers seeking to stave off staffing shortages.

“Garuda Indonesia had recruited 10 flight instructors to expedite our training program and as an anticipation of delays in our training timetable due to the lack of instructors,” the airline said in its annual report.

Garuda employs 842 pilots and copilots as of 2012, and has a further 239 candidates in its training program.

The archipelago’s 16 scheduled airline operators employ around 8,000 pilots and copilots, while approximately 600 foreign pilots have been drafted in, according to data from the Transportation Ministry.

Efforts by airlines to recruit foreign pilots have been hampered by objections among local pilots to differences in pay.

04/04/2013 JG...

[jetjockey696]

Indonesia’s largest airline, the Lion Air Group, is preparing to use its eastern regional hub in Manado, North Sulawesi, as a springboard to reach destinations in East Asia.

“We are aiming to open a route to Canton [Guangzhou] this year using Batik Air,” Lion Air president director Rusdi Kirana told reporters on Friday evening after the launch of the Simas Lion Air Ticket debit card at the Lion Hotel and Plaza.

“After Canton, we will serve other destinations such as Shanghai, Beijing, Seoul and Tokyo.”

He said he expected Batik’s service to Guangzhou to begin in the third or fourth quarter this year.

Batik will also fly from Jakarta to Ambon, Balikpapan and Pekanbaru.

Rusdi added that Manado would be linked with other cities, including Denpasar and Balikpapan, to allow smoother connections to and from East Asian destinations.

“These connections will allow investors and tourists from East Asia to visit eastern areas in Indonesia more easily,” Rusdi said.

Currently, he said, visitors had to transit in Jakarta if they wanted to visit Maluku or Papua.

“With our Manado hub, they will no longer have to backtrack via Jakarta,” Rusdi said.

Another advantage of Manado being the hub to East Asia, he added, was that the airline could avoid using and paying for air charts, as most of the routes were over the sea.

“The distance to those destinations from Manado is the same as it is from Jakarta via Singapore,” Rusdi said.

He added that Lion would also be opening schools in Manado to train pilots, flight attendants and mechanics, as well as constructing a hangar at Sam Ratulangi International Airport to strengthen the eastern hub.

Lion’s western hub is being set up at Hang Nadim International Airport in Batam, Riau Islands.

In addition to its aviation-related businesses, the 180 room, four-star, beach-front Lion Hotel and Plaza has also opened and is accepting guests, despite the fact that not all facilities have been completed.

“We will also be building a five-star hotel on 2 hectares of land worth US$30 million,” Rusdi said.

He further revealed that Lion planned to operate a cruise ship to carry passengers to dive sites, such as Bunaken, just 45 minutes from the planned hotel, and Raja Ampat in West Papua.

Coordinating Economic Minister Hatta Rajasa said Manado was a strategic place as it lay on a line connecting the Pacific Ocean in the north and Australia in the south.

“Manado is one of the key meetings, incentives, conferencing and exhibitions (MICE) centers in Indonesia and has tremendous potential for development,” he said in his address at the debit card’s launch.

“This will help improve connectivity both at home and at the regional level and, hopefully, also the global level.”

That is why, Hatta added, the government had agreed to extend the runway at Manado’s Sam Ratulangi airport from 2,600 meters to 3,000 meters to allow for larger aircraft.

Hatta, who was in Manado for a meeting to discuss the government’s Master Plan for the Acceleration and Expansion of Indonesia’s Economic Growth (MP3EI), added that Manado had the potential for tourism on a par with Bali.

Earlier in the day, Batik Air launched its first revenue flight, serving Jakarta-Manado three times a week on a Boeing 737-900 ER.

The full-service airline is Lion Air Group’s third airline after its no-frill Lion Air and regional Wings Air.

Batik Air president director Capt. Achmad Luthfie said 151 passengers took the maiden flight and he expected a load factor of around 90 percent for the route.

He said the airline had carried out promotions, such as placing ads on various media outlets as well as holding talk shows.

Luthfie added that Batik Air provided roomier 32-inch legroom compared to Lion Air’s 30-inch seat pitch as well as onboard meals and an in-flight entertainment system.

“We also plan to provide WiFi connections pending approval from regulators,” he said after arriving at the Manado airport.

Flag carrier Garuda Indonesia has also announced similar plans.

With only two full-service airlines currently flying, Luthfie said Batik Air would not steal passengers from Garuda as ample opportunities existed in the market.

“We are not taking passengers away from Garuda as we are relying more on Lion Air passengers who, with greater purchasing power, want better services,” he said.

Lion Air’s director of general affairs, Eduard Sirait, said Batik Air aimed to achieve 90 percent on-time performance (OTP). “But we will still be very pleased if we can get 85 to 87 percent OTP,” he said.

When asked about the possibility of opening routes to Australian destinations, Edward said several things needed to be settled first.

“We have to consider the air service agreements between both countries, and whether Batik Air can be named as a designated carrier for those routes,” he said


JP.. 06.05.2013