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Mandala Airlines to Commence International Flights Next Month

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Old 12th May 2010, 14:51
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Mandala Airlines to Commence International Flights Next Month

Jakarta Globe 12th May 2010.....

Low-cost carrier Mandala Airlines announced on Tuesday that it would launch its first international flights beginning on June 25, serving Singapore, Hong Kong and Macau.

Diono Nurjadin, Mandala’s president director, said the addition of the new routes came in response to increasing demand from business and leisure travelers.

“Indonesia, Singapore, Macau and Hong Kong have been centers of business and leisure activities in the region for decades,” he said in a statement. “Many loyal passengers keep asking when Mandala will fly internationally. Now, after Mandala was recognized as an international safety benchmark in Indonesia, we are ready.”

An executive from the Indonesia National Air Carriers Association (INACA) praised Mandala’s expansion while warning that the airline may face stiff competition from local and international airlines, especially on the popular Singapore route.

Mandala will fly from Balikpapan to Singapore and from Jakarta to Singapore, Hong Kong and Macau.

“Our flight from Balikpapan to Singapore gives customers a great low-fare travel alternative they haven’t had before,” Diono said. “At the same time we wanted to reinstate the flights between Macau and Jakarta as this route is a great destination for people [looking] for fun.”

He said that Mandala was committed to keeping air travel affordable.

“We have seen that many routes have high fares for no reason, so we are introducing some much-needed competition,” Diono said.

Mandala is offering low fares to early bookers. The airline’s launch sale started on Tuesday and will finish on May 18 for travel from June 25 to November 30. Fares to Hong Kong and Macau begin at Rp 899,000 ($100), fares on the Jakarta-Singapore route begin at Rp 99,000 and Balikpapan-Singapore tickets start at Rp 499,000.

Trisia Megawati, a Mandala spokeswoman, said the company was targeting a 85 percent to 90 percent load factor from its new routes.

“These new routes are our response to meet the demands in June’s peak season,” she said.

Tengku Burhanuddin, secretary general of INACA, said Mandala’s expansion reflected the strength of the aviation sector.

“Setting up new international routes is not easy,” he said.

He said the Singapore route was very competitive as it was crowded with local airlines such as Garuda, Lion Air and Sriwijaya Air, as well as international carriers. “However, there is no local competition to Macau,” Tengku said.

He forecasts that the aviation sector will grow by 10 percent to 15 percent this year.

Mandala expects to increase its passenger numbers this year to 4 million, up from 3.5 million last year, and is eyeing revenue growth of 10 percent.

Mandala is 51 percent owned by aviation group Cardig International and 49 percent owned by private equity firm Indigo Partners.
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Old 18th May 2010, 09:08
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Balikpapan to Singapore looks promising...
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