Sunday, April 29, 2012

Merpati may fly higher this year with new B737 jets

The Jakarta Post, Jakarta | Sun, 04/29/2012 5:30 PM 

Ailing state owned PT Merpati Nusantara Airlines (Merpati) is set to fly higher after receiving three new Boeing 737 series aircraft this month and opening new routes, an executive said.

“This is part of our programs to revitalize our company, strengthen our network, and serve our customers better,” Merpati corporate secretary Imam Turidy told The Jakarta Post on Sunday. 

The three B737 series aircraft are expected to enable the company to generate more revenues from operating new routes in June from Jakarta, Bandung in West Java and Tarakan in East Kalimantan to Balikpapan in East Kalimantan. 

Merpati currently serves daily Balikpapan–Makassar (South Sulawesi) and Balikpapan–Banjarmasin (South Kalimantan) routes with B737 series units.

“Balikpapan is the busiest business city on the island [of Kalimantan] and flight demand to and from this city always increases year by year. This is a good market for Merpati,” Imam said.

According to State-owned Enterprises Ministry figures, the airline suffered a net loss of Rp 778.6 billion (US$84.9 million) in 2011 on huge debt after gaining Rp 1.61 trillion in revenues. 

The airline received a Rp 561 billion bridging loan last year from the State Asset Management Company (PPA) to help it pay off its debt, which amounted to Rp 8.2 billion to state oil and gas company PT Pertamina for fuel purchases from Aug. 26 to Oct. 16, 2011.

According to Imam, Merpati will have eight new B737 units by the end of the year, making up a total of 17 units that the company would operate. 

The airline currently has 29 aircraft operating on a daily basis, including nine Boeing 737 series, three DHC-6, two Casa C-212, one Fokker-100 and 14 MA-60.

Imam said Merpati aimed to transport 5 million passengers this year, two fold more than the 2.41 million in the number of passengers served in 2011, due to Indonesia’s growing economy.

“Economic growth makes people travel a lot more, for both business and leisure. This certainly will bring positive impacts for the airline industry,” he said.

According to recent data from the Transportation Ministry, Indonesia saw a 17 percent increase in the number of airline passengers last year from 58.39 million in 2010 to 68.19 million in 2011.

Ministry spokesman Bambang Ervan said that the ministry was still sticking to their target of a 15 percent increase in the number of airline passengers this year despite rising oil prices and global political unrest. (nfo/mtq)

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